You have probably seen the news but we wanted to let you know the property announcements detailed in the budget last week, specifically around the stamp duty extension.
Stamp Duty Holiday has been extended for 3 months!
The stamp duty holiday was originally due to end on the 31st March 2021 but has now been extended for three months until the 30th June 2021.
There will then be a transition period of three months taking us back to normal stamp duty rates where the stamp duty threshold will temporarily sit at £250,000 from July until the end of September.
From the 1st October 2021, the stamp duty threshold will return to the normal level of £125,000.
This is great news if you are considering moving home. It is also great for buy to let landlords looking to buy their first rental property or extend their portfolio.
A new mortgage guarantee scheme to help buyers get 95% mortgages
Will the stamp duty holiday be extended after June 2021? Well, that’s unlikely, however the government has introduced a new scheme to help buyers with small deposits of only 5% purchase properties up to the value of £600,000.
This new scheme will launch in April 2021.
The way the scheme works is that the government has pledged to cover any losses the lenders’ incur if for any reason a buyer defaults on their mortgage payments for any reason, in return for this guarantee, lenders will provide mortgages up to 95% of the value of the property price so that you as a buyer can proceed with a deposit of just 5% of the property price.
Want to hear the great news?! This new scheme is available to all individuals purchasing a new residential property so whether you are a first time buyer or looking to move home this is available to you. This isn’t available to investors unfortunately.
If you would like to understand more about either of these schemes or are looking to move house or purchase a new property please get in touch as we would love to help you as always.
