Beat the April Stamp Duty Hike – How Bridging Loans Can Help Secure Your Second Home Now
The UK property market is heating up as the April 2025 Stamp Duty Land Tax (SDLT) increase looms. If you’re looking to buy a second home or investment property, time is running out to lock in savings before the higher tax rates kick in. But what if you don’t have all the funds ready?
Enter bridging loans—a fast, flexible financing solution that could help you secure your dream property now and beat the tax hike.
What’s Changing with Stamp Duty in April 2025?
From April 1, 2025, the government will increase SDLT rates, reversing the temporary reductions introduced in 2022. Here’s what that means for buyers:
- First-time buyers: The tax-free threshold drops from £425,000 to £300,000, meaning an extra £6,250 in costs for many.
- Second-home buyers & investors: The current 3% SDLT surcharge will rise to 5%, significantly increasing upfront purchase costs.
For property developers and investors, delaying your purchase could cost thousands. Acting now is crucial—but what if your funds aren’t liquid yet?
What is a Bridging Loan?
A bridging loan is a short-term secured loan designed to “bridge” the financial gap when buying a new property before selling an existing one. Unlike traditional mortgages, bridging loans provide fast access to funds, often within days, allowing you to act quickly in a competitive market.
These loans typically last between 6-12 months and are repaid once you sell your current property, refinance, or secure other financing.
How a Bridging Loan Helps You Beat the Stamp Duty Increase
By using a bridging loan, you can purchase your second home before April 2025, avoiding the higher SDLT rates. Here’s why investors are turning to bridging finance:
✅ Fast Access to Funds – Complete your purchase within weeks, not months, avoiding delays from mortgage approvals.
✅ No Need to Sell First – Buy your second home before selling your current property.
✅ Flexible Repayment Options – Repay once you sell, refinance, or secure long-term financing.
✅ Take Advantage of Market Opportunities – Move quickly on great property deals before prices rise further.
Key Considerations Before Taking a Bridging Loan
🔹 Exit Strategy – Have a clear plan for repaying the loan, such as selling your existing property or refinancing.
🔹 Interest Rates & Fees – Bridging loans cost more than mortgages, but the potential SDLT savings can outweigh this.
🔹 Professional Guidance – Work with a trusted broker or lender to ensure the loan fits your financial goals.
Final Thoughts – Don’t Miss This Window of Opportunity
With the Stamp Duty hike looming, now is the time to act. A bridging loan could be the perfect solution to fast-track your second home or investment purchase, saving you thousands in additional tax.
Need expert advice? Contact Sunrise Commercial Finance today to explore your options and secure the best bridging loan for your needs.
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