Property Stamp Duty Holiday Deadline extended to 30th
June
As expected the government announced
yesterday that the temporary stamp duty holiday will be extended until the end
of June.
The news will hopefully come as a relief to those buyers and sellers in the
Retford area who have been trying to get their sale completed in time
to meet the previous deadline of 31st March.
What is the temporary stamp duty holiday?
The temporary stamp
duty holiday, first announced by the government on 8th July last year,
means that if you are buying a home up to the value of £500,000 you will not
pay any stamp duty.
The extension means you now
have until 30th June to complete on the purchase to make the stamp duty saving.
Then, to smooth the transition
back to normal, the nil rate band will be £250,000, double its standard level,
until the end of September 2021
It will return to the usual
threshold of £125,000 on 1st October 2021
How the new mortgage guarantee scheme will help buyers
with 5% deposits
For anyone who’s found it
challenging to save for a 10%, 15% or 20% deposit over the past year or so,
this is good news.
The government also announced
yesterday a new mortgage guarantee scheme to help first-time buyers AND
existing homeowners.
Under the new scheme, which
will launch in April, first-time buyers and existing homeowners will be able to
purchase homes worth up to £600,000 with a deposit of just 5%.
The way the scheme works is
that the government pledges to repay lenders some of their losses if you as the
buyer default on your mortgage repayments for any reason.
In return for this
guarantee, lenders have to sell mortgages worth up to 95% of a home’s price –
so that you as the borrower can proceed with a deposit of 5%.
It’s a potential
game-changer for many first-time buyers as lots of 95% mortgages were made
unavailable during the past year.
Thanks or reading
I'm here to help sellers, buyers, landlords, and
tenants.
Call me or drop me a message if you think I might
be able to help you.
The Good Estate
Agent – North Nottinghamshire
Tel: 01777 237310 or 07981 744003
https://www.facebook.com/thegoodestateagentnorthnottinghamshire
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