Although Stamp Duty is Going Up, Mortgage Rates Are Dropping: What Does This Mean for Home Buyers?
If you’ve been considering buying a new home, you’ll no doubt be weighing up the financial landscape. With Stamp Duty changes set to take effect from 1st April 2025, buyers are encouraged to act now to take advantage of current savings before the rates increase. However, in more positive news, mortgage rates are dropping, making homeownership more affordable for many buyers.
At Campbell Buchanan George, we understand that buying a new home is a big decision, and timing is everything. With a selection of stunning new homes immediately available now at Fairfield Meadows and Alconbury Weald, there has never been a better time to secure your dream home before Stamp Duty increases.
Upcoming Changes in Stamp Duty
Effective 1st April 2025, the Stamp Duty Land Tax (SDLT) thresholds will revert to their previous levels, significantly impacting both first-time buyers and existing homeowners.
For First-Time Buyers
• Current Rates (Until 31st March 2025):
• 0% on properties up to £425,000
• 5% on the portion between £425,001 and £625,000
• New Rates (From 1st April 2025):
• 0% on properties up to £300,000
• 5% on the portion between £300,001 and £500,000
For example, a first-time buyer purchasing a £400,000 home currently pays no SDLT, but from April 2025, they will face a £5,000 Stamp Duty bill.
For Home Movers
• Current Rates (Until 31st March 2025):
• 0% on the first £250,000
• 5% on the portion between £250,001 and £925,000
• New Rates (From 1st April 2025):
• 0% on the first £125,000
• 2% on the portion between £125,001 and £250,000
• 5% on the portion between £250,001 and £925,000
A buyer purchasing a £300,000 home now pays £2,500 in SDLT, but after April 2025, that will double to £5,000. Those purchasing additional properties will see the SDLT surcharge rise from 3% to 5%, making investments considerably more expensive.
The Silver Lining: Falling Mortgage Rates
While Stamp Duty is increasing, the good news is that mortgage rates are on a downward trend, potentially making your borrowing more affordable.
Recent reductions in the Bank of England base rate to 4.5% have encouraged lenders to offer more competitive mortgage deals. Many banks have introduced sub-4% rates, making mortgages cheaper than they’ve been in years.
Many lenders, including Nationwide, Barclays, and TSB, have introduced highly competitive mortgage rates, further reducing the cost of borrowing. For those considering buying a new home, lower mortgage rates can offset the upcoming SDLT increases, making it financially advantageous to secure a mortgage now rather than waiting.
If you’re planning to buy now, you could save thousands by moving before April 1st. With mortgage rates at a two-year low, this is an unmissable opportunity to:
- Secure a lower mortgage rate before any potential future increases
- Save up to £6,250 in Stamp Duty if purchasing a property under the current thresholds
- Move into a brand-new, energy-efficient home at Fairfield Meadows or Alconbury Weald
- Benefit from our expert team’s guidance on securing the best mortgage deals
Your Dream Home is Ready and Waiting
At Campbell Buchanan George, we have a selection of beautiful, energy-efficient homes ready to move into now at Fairfield Meadows and Alconbury Weald.
- Modern, stylish homes with high-spec finishes
- Premium kitchens with Quartz worktops and Bosch appliances
- Spacious gardens, ready for you to personalise
- Excellent transport links to London, Cambridge, and beyond
With limited homes remaining, now is the perfect time to arrange a personal viewing and see for yourself why so many people are choosing Campbell Buchanan George for their new home. And remember, buying a new home for sale is a personal experience so we and our professional mortgage advisors can guide you to secure the best finance option.
Book your appointment today to secure your dream home.