Bridging Loan for Stamp Duty: Can Specialist Finance Be Used to Cover the Levy?

Technically, yes. Bridging loans are primarily used to “bridge the gap” between property investment transactions. Often, this involves securing a property in the short-term, while long-term solutions are found. But, a bridging loan for stamp duty bills is a possibility.

Specialist finance can be used to clear existing finance, fund a business venture, or bridge a funding gap. When assessing a claim, we focus on understanding the security asset’s value, and the investor’s exit strategy.

If a borrower plans to use a bridging loan for stamp duty costs, they’ll likely be making a substantial investment. Our funding starts from £100,000. Comparatively, stamp duty bills tend to only cost a few thousand pounds[1].

Still, with the thresholds coming down, more buyers and homeowners will be liable to pay this levy. As such, it’s worth exploring how specialist finance may be able to help.

A Stamp Duty Bridging Loan – Why Would There Be a Need For One?

If an investor is thinking about a bridging loan for stamp duty costs, they’re probably not the only one. The property market has been swayed by several stamp duty changes in recent years. While individual stamp duty bills may be relatively low, we’re collectively paying billions to cover the levy[2].

It’s no wonder the government targeted the tax for reform. In July 2020, at the height of the pandemic, then Chancellor Rishi Sunak introduced a stamp duty holiday to boost the UK property market. Eventually, the scheme was extended into 2021 but was removed in March 2025.

Buyers completing on a property for less than £500,000, before July 2021, didn’t have to pay stamp duty at all. Reduced rates were also available.

More recently, we’ve seen first-time buyer relief scaled back, with it currently being 0% up to £300,000, and then 5% on £300,001-£500,000[3]. There has also been a 5% surcharge applied on “additional dwellings” which includes second homes and BTL properties[4].

Also, the 2025 Autumn Budget is just around the corner, and rumours are emerging of more changes on the way. For instance, reportedly, Rachel Reeves is considering allowing buyers to stagger their stamp duty payments. The idea being that by allowing buyers to spread their payments out in instalments, it could stimulate the economy and housing market[5]. Of course, there is always the risk that stamp duty rates could be raised higher as the government desperately tries to balance the books.

What Impact Did the Stamp Duty Holiday Have on the Market?

It’s evident that as stamp duty is tweaked (and other property-related taxes for that matter), it has an impact on the housing market. Which, in turn, effects property investors. They need to adapt to these new realities and that’s where specialist finance comes into play. We’re flexible enough to move with the market.

Ahead of the stamp duty thresholds dropping, we saw transactions spike. In March 2025, HMRC data showed there were 177,370 property sales – a 104% increase on March 2024 and 62% higher than in February[6]. At the time, this could have created opportunities for savvy investors who may have been able to take advantage of all the stock coming to market.

Even after the fact, there was opportunity. House prices dropped once the stamp duty holiday ended[7]. This could have created a small window of opportunity for investors who were able to move fast. Having access to a bridging loan that would’ve allowed them to move in mere days, and not weeks, could’ve made all the difference.

Even now, with the budget looming, we’re seeing pre-emption from the market. As speculation mounted in the summer, we saw 6.1% fewer new property listings in the first half of August, and there was a 23% rise in properties being withdrawn from the market without a sale[8]. Post-budget, we may yet see more shifts in market demand and borrowers need to be ready for that.

How Specialist Lenders Step in with a Stamp Duty Bridging Loan