Will I need to pay stamp duty when I remortgage?

Do You Pay Stamp Duty on a Remortgage? What Homeowners Need to Know

Disclaimer: This guide is for informational purposes only and does not constitute personal financial advice. Rules around stamp duty and remortgaging vary by lender and personal circumstances. Always consult an FCA-authorised mortgage adviser for regulated guidance.

Introduction

Many homeowners choose to remortgage – whether to move home, release equity, or secure a better mortgage rate. A common question is do you pay stamp duty on a remortgage? The answer depends on whether you are buying a new property or staying in your current home.

What is Stamp Duty?

Stamp Duty, officially called Stamp Duty Land Tax (SDLT), is a tax paid when buying property or land above a government-set threshold. The amount depends on the property value exceeding the threshold. For example, if your property is £20,000 above the threshold, you pay a percentage on that £20,000.

Recent stamp duty holidays have temporarily increased the threshold, but this is being phased out. Use a stamp duty calculator to check your exact liability.

Who Pays Stamp Duty?

Most UK buyers must pay stamp duty if the property price exceeds the threshold:

• Standard buyers: £125,000
• First-time buyers: £300,000

First-time buyer exemptions do not apply to remortgages.

Do Contractors or Professionals Pay Stamp Duty?

Yes. There are no exemptions based on profession. The tax depends solely on property value, not occupation.

What is Remortgaging?

Remortgaging means switching to a new mortgage, either on the same property or when moving home. Reasons include:

• Securing a lower interest rate
• Releasing equity for renovations, holidays, or retirement
• Moving off a higher Standard Variable Rate (SVR) at the end of a fixed term

Some lenders allow you to “port” your mortgage when moving to a new property, avoiding the need for a new mortgage.

Is Stamp Duty Payable on a Remortgage?

It depends:

• Buying a new property: You will pay stamp duty if the property value exceeds the threshold.
• Staying in your current home: No stamp duty is payable. SDLT only applies to property purchases, not switching mortgage deals.

Factors to Consider When Remortgaging

• Whether you’re releasing equity or borrowing additional funds
• End of fixed mortgage term
• Interest rates offered by alternative lenders
• Overall affordability and future plans

FAQs

Do I pay stamp duty if I’m remortgaging without moving?

No – SDLT only applies when purchasing a property or land. Simply switching your mortgage does not trigger stamp duty.

Will releasing equity trigger stamp duty?

No – taking extra funds from your current property does not count as a property purchase and does not incur stamp duty.

Do first-time buyer rules apply when remortgaging?

No – first-time buyer exemptions only apply when purchasing a property for the first time.

What happens if I buy a new property and remortgage simultaneously?

Stamp duty will be payable on the new property if its value exceeds the threshold. Factor this into your costs when planning your move.

Are there any profession-based exemptions?

No – SDLT is based solely on property value, not your job or status.

Conclusion

Whether you’ll pay stamp duty when remortgaging depends on if you are buying a new property or simply switching your mortgage. Staying in your current home and remortgaging does not attract SDLT, while moving home may incur significant costs. Always consult an FCA-authorised mortgage adviser to understand your liabilities before remortgaging.