Can Your Mortgage Cover Stamp Duty?

In this article, we’ll look at whether it’s possible to add stamp duty to a mortgage, what other options are available if you can’t afford to pay it all upfront and where to look for the right guidance.

Can you add stamp duty to your mortgage?

Yes and no. Technically, there isn’t a unique arrangement that allows you to add stamp duty to your mortgage. Still, you can work around this by reducing the deposit you put down and using the money to pay stamp duty instead.

Let’s look at an example of how this could work (using SDLT rates applicable for England and Northern Ireland, correct at the time of writing – November 2025):

Let’s say you are buying a £450,000 property (not as a first-time buyer) and have £100,000 to put down as a deposit. This gives you a loan-to-value (LTV) of 78%, meaning you’d need to borrow £350,000.

Because most residential mortgage lenders are happy with LTVs between 75%-80%, you could instead choose to borrow £360,000, pay £90,000 as a deposit and use the extra £10,000 to cover the stamp duty (5% on properties valued between £250,001-£925,000). Your LTV would still be acceptable to most lenders, and you’d owe the stamp duty equivalent to additional borrowing on your mortgage.

Adding stamp duty to a mortgage involves meeting affordability requirements regarding how much you can borrow and having enough deposit left to meet the lender’s LTV requirements.

If, in the above example, the lender was happy with a 10% deposit and borrowing of £405,000, then you could, in theory, put down £45,000, pay for stamp duty and other costs and use the rest to go on holiday if you wanted to – it’s entirely up to you! Just be aware that the higher the deposit, the better rates you normally qualify for and the less you will pay overall.

If you want to work out some more examples, more specific to your current situation, you can use our calculator below:

Is it possible in Scotland and Wales?

Although the rules for stamp duty in Scotland and Wales are slightly different from those in England, that doesn’t mean you won’t be able to add stamp duty or LBTT (Land and Buildings Transaction Tax) to your mortgage. You can use any sacrificed deposit money as long as you still have a low enough LTV to be eligible for your mortgage and can afford the higher monthly repayments.

Can stamp duty be added to a second home mortgage?

Yes, again, it simply comes down to eligibility and affordability. If you have enough cash to cover a suitable deposit and your lender is happy that your higher level of borrowing is affordable, your stamp duty can be added to a second home mortgage.

What to do if you can’t afford stamp duty

Adding stamp duty to your mortgage like this is an expensive way to do it because you’re paying it back over such a long period. For example, if you borrow £10,000 at 5.5% over 25 years, you will repay £18,423 overall. Most experts would advise only adding stamp duty to your mortgage like this if there is no other way to find the money.

But what are the alternatives if you can’t afford to pay stamp duty or don’t have the scope to sacrifice any of your deposit?

Your first step should always be to talk to a broker, as they can assess your situation and give you advice on all of your options. For example, they may be able to find you a lender who will consider a 95% LTV mortgage if that could help you free up cash or a lender who would look at a 5.5 times salary mortgage if the maximum borrowing cap is an issue.

Remember that regulations were introduced in 2018, so you can no longer pay stamp duty with a credit card. This reduces the risk of homeowners overcommitting and getting into financial difficulty.

If you get in touch, we can arrange for a mortgage broker to contact you directly and discuss further.

Can a first-time buyer add stamp duty to a mortgage?

A first-time buyer can, in principle, reduce their deposit amount and borrow more to cover stamp duty. The difficulty here might be that first-time buyers have less flexibility with their deposit, as they don’t have equity in an existing property and have had to save from scratch.

The good news for first-time buyers, though, is that if they buy a house for less than £500,000, they will qualify for stamp duty relief. In these circumstances, anything under £300,000 won’t be liable for stamp duty, and the portion between £300,001 and £500,000, if any, will be charged at 5%.

Which lenders allow stamp duty to be added to mortgages?

Adding stamp duty to a mortgage isn’t a specific product feature that varies from one lender to another, so depending on your other circumstances, it may be possible with any lender.

Work with your broker to review your overall financial position, the cash you have available, and how increasing your borrowing could affect affordability and rates. This will give you a strong basis for making an informed decision about how best to manage your borrowing.

Can you use equity to pay stamp duty?

Yes, if you’re selling one home and buying another, the equity from your existing home can be used flexibly, depending on your situation. If you want to use some of the equity to pay for things like stamp duty, you would simply increase the amount you borrow on your new mortgage.

Why Use Online Mortgage Advisor?

Deciding how much to borrow and how to fund costs like stamp duty can be complicated, and it can sometimes be hard to find the most cost-effective way to manage everything. This is where a broker can help. 

With access to hundreds of lenders, your dedicated mortgage adviser can find the best possible mortgage deal for your circumstances. We’re so confident in our service that we guarantee it – if you find a better mortgage deal elsewhere, we’ll give you £100*.

Call 0330 818 7026 or make an enquiry for a free consultation, and a member of our team will explain exactly how we can help.