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With a number of measures announced in this week’ s budget, specifically aimed at home buyers, it’s good news if you are planning a move any time soon!
So what were the key announcements and how could they impact on you?
The current stamp duty holiday has been extended
The existing stamp duty holiday (which was announced for home buyers in England and Northern Ireland back in the summer of 2020 and was due to finish in March this year), has now been extended until the end of June 2021. This means if you are in the process of buying a home or you are just about to put an offer in, there should still be time for you to capitalize on this tax saving. The stamp duty holiday applies to property purchases up to £500,000.
If you miss the 30th June deadline, you can still make a stamp duty saving
To ease the transition in the property market following the end of the stamp duty holiday on 30th June this year, the threshold, above which you have to pay stamp duty in England, will be temporarily doubled (from £125,000 to £250,000). This means, you still won’t have to pay stamp duty on purchases under £250,000 and for purchases over this threshold, there will still be some savings to be made. There will be a return to the usual threshold of £125,000 on 1st October 2021.
A new 95% mortgage guarantee scheme
To assist first time buyers and those with lower deposits, the Chancellor has announced a new, government backed mortgage guarantee scheme. With lenders typically looking for up to a 20% deposit, it has been hard for many people to save enough to take that first step onto the property ladder. The new government backed 95% mortgage scheme will be available to all buyers (of properties costing up to £600,000), and it is designed to make home ownership more accessible. The mortgages will be available from April this year, until December 31st 2022. These new mortgages will be guaranteed by the government, removing the risk for lenders.