for borrowers

We’ll be here to help you benefit from the stamp duty holiday

How can you benefit from the stamp duty holiday?

In July 2020 the government announced the introduction of a temporary stamp duty holiday. So if you’ve been thinking about relocating, upgrading, or downsizing, now could be a brilliant time to make the move without making any stamp duty payments. But remember - the stamp duty holiday expires on 31st March 2021, and with property transactions taking anywhere up to six months, it’s important to start the process sooner rather than later.

What is stamp duty?

Stamp duty, sometimes called ‘property tax’, is a lump sum that’s usually payable when you buy a new home, with the amount paid varying depending on the house price and its location. For example, if the price of your new home is £300,000, you’d expect to pay 5% in stamp duty - a fee of £15,000. So it’s easy to see why the government’s stamp duty holiday is so attractive to people. Not only can you save a substantial amount of money, but many buyers and sellers are more motivated to move quickly too. Under the government’s temporary stamp duty holiday, you won’t pay a penny of stamp duty if your home is worth £500,000 or less. For more information on Stamp Duty Land Tax please take a look at The Cambridge Mortgage Glossary.

Does the stamp duty holiday benefit First Time Buyers?

According to Zoopla, the average price paid for a property in Cambridge is just under £450,000. Typically, First Time Buyers don’t have to pay any stamp duty on homes that are £300,000 or less. However, under these new measures, First Time Buyers won’t have to pay any tax on homes under £500,000 either, so there could be some very healthy savings available.

Am I eligible if I’ve exchanged but haven’t completed?

It’s really important that you complete your purchase by 31st March 2021 - a day later and you’re likely to receive a hefty stamp duty bill. To improve your chances of saving on stamp duty, we’d recommend you start your house-buying journey as soon as possible.

Even with a healthy property market and the government’s generous stamp duty incentive, we know a lot of people are cautious about moving home at the moment. That’s why we’ve put together a range of guides to help make the process a little bit less daunting.

And remember - if you have any questions, we’ll be here to help. You can arrange a free mortgage advice meeting online or by calling 0345 601 3344.


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