As part of the Government's economic stimulus package, properties valued between £125,000 and £175,000, have been exempt (nil rated) from stamp duty since September 2008.
This will come to a close at the end of the year meaning home buyers will once again face a 1% tax on all properties valued between £125,000 and £175,000. First time buyer contractors at this property price range, would normally face a stamp duty tax bill of anywhere between £1,250 and £1,750.
With a potential saving of up to £1,750 at stake for those contractors who have been considering buying a property, this impending deadline is an added incentive to move fast. First time buyers have been hit hard by the costs of climbing on to the ladder and for these people this is a golden opportunity to make a big saving.
Contractors looking to take advantage of the stamp duty holiday must ensure their mortgage completes on the 31st December 2009. With house purchases typically taking 4-8 weeks to complete, Freelancer Financials is urging potential home buyers that the effective deadline for mortgage applications is actually 1st November for 2009 completions.
If you wish to be contacted about contractor mortgages, please request a call back from one of our financial advisors.
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Author: John Yerou from Contractor Mortgages