We hope everyone is having a lovely summer. We’ve put together a very information-filled newsletter this month. Firstly, we’ve looked at the new Stamp Duty changes, which see the end of the Stamp Duty relief from back in 2022. The changes happened in April, so we’ve been listening to our clients and hearing how the changes might affect you.
And remember – we say it all the time – but using an advisor is the gold standard. We know the market inside and out. Think of it this way, you wouldn’t cut your hair yourself, so leave this stuff to the experts. Give us a call or email anytime for advice tailored just for you.
In this month’s newsletter:
UK stamp duty changes.
If you’re planning to buy property in England or Northern Ireland, there’s some big news you should know about. As of April 1, 2025, the temporary Stamp Duty relief introduced back in 2022 has officially ended, and several major changes are now in effect.
For a while, buyers enjoyed higher tax-free thresholds, which made getting on the property ladder a little easier (and a bit cheaper). But from April, those thresholds have been pulled back to their pre-2022 levels, meaning buyers may now face steeper costs when purchasing a home.
For most buyers, the amount you can spend before paying any Stamp Duty has dropped from £250,000 to £125,000. That’s a pretty significant shift. And for first-time buyers, the nil-rate threshold has been lowered from £425,000 to £300,000. If you’re buying for the first time and your property is valued between £300,001 and £500,000, you’ll now pay 5% on the portion above £300,000. Anything over £500,000? Unfortunately, no first-time buyer relief applies at all.
Investors have also been hit. The surcharge for buying additional properties, like a second home or a buy-to-let, has gone up from 3% to 5%. And if you’re purchasing through a company or other non-individual entity, expect to pay even more: the rate for properties over £500,000 has jumped from 15% to 17%.
Unsurprisingly, the lead-up to these changes saw a surge of activity. Buyers rushed to beat the deadline, with completions by first-time buyers up 62% in the first quarter of 2025 and home movers up 74%. But once April hit, the brakes slammed on. Property transactions dropped 64% compared to March, and house prices have already started to dip – falling by 0.4% in May, according to Halifax.
So, what does this mean for you? Whether you’re buying your first home, upsizing, or investing, it’s more important than ever to factor Stamp Duty into your budget. These changes could impact your affordability and your return on investment, especially for landlords.
However, as we’ve seen house prices drop because of the Stamp Duty increase. And with the interest rates dropping having reduced, it could actually be a really great time to buy. If you’re unsure how the new rules affect you, chat with us to help you plan your next steps with confidence. Because when it comes to important financial decisions, having expert guidance on your side can make all the difference.
Accessing capital: Comparing equity release, loans and remortgages.
This fact sheet breaks down three common options. Plus, we’ve included real-life examples to help you understand how each one works. But don’t forget, this is just a guide. We’ll go through your own circumstances in a discovery meeting to find the specific option for you.
1. Equity Release (Lifetime Mortgage)
- Best for: Over-55s who want tax-free cash without monthly repayments.
- How it works: Borrow money secured against your home; no monthly repayments needed. Interest builds and is repaid when you pass away or move into long-term care. You still own your home and can choose to ring-fence inheritance.
- Example: Margaret (68) wanted to gift £25,000 to help her granddaughter buy her first home. She used a lifetime mortgage to release equity from her home without affecting her lifestyle. There are no repayments, and the loan plus interest will be repaid when the property is sold in the future.
- Best for: Borrowers who want to keep their existing mortgage deal.
- How it works: Take out a second loan secured on your property, in addition to your existing mortgage. Ideal if your current deal is on a low interest rate.
- Example: Tom and Priya needed £40,000 to renovate their kitchen and add a home office. Their existing mortgage was on a low fixed rate with years left. Instead of remortgaging and losing that deal, they used a secured loan alongside it.
- Best for: Borrowers looking to switch deals and release funds.
- How it works: Remortgage your home for a larger amount than you currently owe. The extra money is released as a lump sum.
- Example: Jake and Olivia had £120,000 remaining on their mortgage and wanted £30,000 for debt consolidation and home upgrades. They remortgaged to a new deal worth £150,000, clearing credit cards and reducing their overall monthly outgoings.
| Equity Release | Secured Loan | Remortgage | |
|---|---|---|---|
| Age restriction | 55+ only | No | No |
| Keep current mortgage? | Yes | Yes | No (replaces it) |
| Monthly repayments? | Optional | Required | Required |
| Tax-free lump sum? | Yes | Yes | Yes |
| Impacts inheritance? | Yes | Possibly | Possibly |
| May affect benefits? | Yes | Possibly | Possibly |
Each of these options has pros and cons depending on your age, mortgage status, and financial goals. It’s important to consider your lifestyle. Do you need repayments now or later? Will this affect family inheritance or your benefits? Are you keeping or changing your current mortgage?
You’ll need regulated advice before making any decisions, especially with equity release. So let’s book in a discovery meeting to help you find the most suitable option for your personal needs. Hit ‘reply-to’ this email to arrange a time.
Stay calm and financially resilient.
Life can be unpredictable. Whether it’s a sudden job loss, an illness, or a big, unexpected expense, being financially resilient means you’re ready to weather the storm.
The best part? A lot of these you can ‘set and forget’, meaning with a budget in place, you can enjoy your holiday or drinks in the beer garden. But also know when to ‘call it’ to ensure your financial resilience.
Here’s how you can start building that resilience today in practical, achievable steps.
- Start an Emergency Fund: Aim to save 3–6 months’ worth of essential expenses (like rent, bills, and food). Begin with small weekly amounts and keep it in an easy-access savings account. Some banking apps let you round up purchases to build savings effortlessly.
- Review your spending. Cancel unused subscriptions, compare utility prices, and switch providers to save. Use cashback and voucher websites for everyday purchases.
- Deal with Debt: Pay off high-interest debts first, such as credit cards. Look into 0% balance transfer deals. If you’re overwhelmed, free advice is available from organisations like StepChange and Citizens Advice.
- Income Protection Insurance can replace part of your income if you’re unable to work due to illness or injury. Critical Illness Cover pays a lump sum for certain serious conditions. Some employers include these in benefit packages.
- You might be eligible for benefits. Use Turn2us or Entitledto to check on your Universal Credit, Council Tax Reduction, or Cost of Living Payments. Many people miss out on money they could claim.
- Could you explore extra income? Side hustles, freelance gigs, or renting out a spare room (via the Rent a Room Scheme) can supplement your income. Small, consistent boosts can make a big difference.
- Put money into an ISA or pension regularly. If you’re under 40, a Lifetime ISA could help you save for a home or retirement with a 25% government bonus.
- Insure What Matters: Life, home, and health insurance all help protect your financial wellbeing in the face of unexpected events.
Financial resilience isn’t about being wealthy. It’s about planning, protecting, and preparing for the unexpected, one step at a time. Ready to take the first step? Start with just one change today. Give us a call and let’s see how we can help.