Pay down mortgage with stamp duty cash says Barclays

December 10, 2014 by in category Mortgage News with 0 and 0

Barclays are urging borrowers to use the cash saved under the new stamp duty rules to pay down their mortgage rather than spend the money on other things.

They should put it to good use by reducing their mortgage amount amount which by even a small amount could lead to a not inconsiderable interest saving over the term of the mortgage.

In addition a reduction in the borrowing amount could tip the mortgage into a lower LTV (loan-to-value) bracket, so switching to a lower interest rate could be an option, with further payment savings to be made.

Under the new rules, people buying homes will only pay the tax rate on the part of the property which falls within a band instead of paying it on the whole property price.

London Mortgage Advice Ltd is authorized and regulated by the Financial Conduct Authority for residential mortgages and non investment insurance business.

Although London Mortgage Advice Ltd is regulated by FCA, commercial mortgages and most buy-to-let and offshore mortgages are not regulated by the FCA.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

London Mortgage Advice ©2015