Mortgages upped due to stamp duty burden

The stamp duty is becoming an increasing burden on British homeowners, with over a quarter having to increase the size of their mortgage to accommodate costs.

Research carried out by mform.co.uk speculates that some 28 per cent of people on the property ladder have had to up their mortgage, with the average sum rising by £3,770.

The group has calculated that on a typical mortgage of £150,000, the extra amount borrowed would increase monthly repayments by £24.58.

Eamonn Rice, chief executive of mform.co.uk, described stamp duty as a "nasty surprise" for homeowners, with the average home costing £170,000.

"With all the other cost associated with homebuying it is no surprise that people are using their mortgage to help pay their stamp duty bill," he added.

A one per cent charge is levied on properties worth over £125,000, three per cent for properties over £250,000 and four per cent on homes over £500,000 under the stipulations of the duty.

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