Can you use a mortgage to buy a flip?

This week on Ask Rob & Rob, Raj & Ruth asked:

Does the stamp duty surcharge apply to limited companies, & can you use a mortgage to buy a flip?

Two questions this week in our first ever double bill! To answer Raj’s question: yes, you have to pay stamp duty if you have a limited company. If it’s the first purchase, or the 50th, stamp duty still applies, zero exemptions. No way around it at all, unless you’re buying properties under £40,000, which is an impressive feat of its own.

As for Ruth’s question, you can find mortgages that won’t have an early redemption penalty, but you still shouldn’t really be doing it – if you’re taking the money on the proviso that you’ll have it for a couple of years, returning it after a couple of months is going to raise eyebrows. Lenders may let it slide a couple of times, as these things happen, but if it becomes a part of your business model at some point they will notice, and they won’t want to lend to you again.

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