Some homeowners are having to add up to £10,000 onto their mortgages to cover stamp duty payments, according to a new report.
Research by mortgage website mform.co.uk found that nearly three-quarters of all homebuyers are now liable to pay the tax – which is currently levied on properties worth £125,000 or more.
And the figures showed that nearly a third of those liable for the tax had to add extra amounts onto their mortgage to cover stamp duty costs, adding an average of £4,000 to the total value of a mortgage - and as much as £10,000 for some at the higher end of the market.
Eamonn Rice, chief executive of mform.co.uk, commented: "With all the other costs associated with homebuying it is no surprise that people are using their mortgage to help pay their stamp duty bill. However putting the cost on your mortgage means you will be paying for stamp duty for a long time and the interest will mount up."
Stamp duty starts at 1.5 per cent for homes worth £125,000 and can rise steeply, coming in at three per cent for properties valued at more than £250,000.
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