Stamp Duty Rules Limit ‘Bank of Mum and Dad’
- 23rd March 2017
- Benjamin Jones
- No comments
Since the introduction of the 3% stamp duty charge on second home purchases, parents with their own home are now less likely to sign up for a joint mortgage to support first-time buyers.
Co-ownership with parents was previously a solution for first time buyers who found they could not pass mortgage eligibility tests. Now parents may be more inclined to gift their children a cash deposit to avoid the additional stamp duty charges.
In 2016, the number of first-time buyers in the UK reached the highest level for over a decade, with 29% of first-time buyers relying on assistance from ‘The Bank of Mum and Dad’.
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