With stamp duty increasing at a rate of 5 times the average UK salary, experts at Zen Finance are advising homeowners not to move, but to use the equity in their home and take out a secured loan to make improvements to their existing home.
Research by the Stroud and Swindon Building Society has found that stamp duty is increasing at five times the rate of UK salaries.
Annual gross income in the UK rose by 54.3% in the last ten years, whilst the stamp duty bill on the average UK property rose by 289.3% in the same period.
If you take the average house price in the UK of £219,528 (Council of Mortgage Lenders, August 2007) the stamp duty payment would equate to £2,195.28 which is greater than the average take home pay for an individual. This is not only affecting first time buyers, existing homeowners who are considering moving are being put off by the amount they would have to pay in stamp duty.
Tom Nelson, Head of Secured Lending at Zen Finance has the solution, and is advising homeowners to stay put and improve their existing property with a homeowner loan. He says "By taking out a secured loan, customers will be able to increase the amount of living space in their homes while adding value to their property."
If you are a homeowner with an existing mortgage, Zen Finance can help you with a secured loan which you can use to make improvements to your current home. Homeowner loans are not subject to stamp duty charges and the set up costs are much lower than a mortgage or remortgage, so it really is an ideal solution for making home improvements, and the money could be in your bank account within two weeks.
If you are interested in finding out how a secured loan can help you make improvements to your home, call Zen Finance today on 0800 083 3386.