How does the budget affect your property hunt?
Struggling to get a foot on the property ladder? Heard rumours about possible help with your mortgage from news reports on the spring Budget, but not really sure what it all means or how it will affect you?
Well firstly the good news is, you’ve heard right. There are a number of schemes coming into play from April 2021, designed to stimulate the economy and help people on the hunt for a new home.
Here we take a closer look at exactly what has been announced and – more importantly – what it means for you.
The announcements
As part of the Budget set out on 3 March, the government made two key announcements regarding property. These were:
- A new 95% mortgage guarantee scheme for home buyers with smaller deposits.
- A stamp duty cut.
The 95% mortgage guarantee scheme
This is a new government-backed mortgage guarantee scheme starting in April this year.
The idea behind the scheme is to encourage lenders to offer low deposit 95% mortgages by effectively using the government as a guarantor.
What does it mean?
Since the start of the pandemic, the number of low-deposit mortgages has drastically reduced, making buying property extremely difficult for anyone unable to save a substantial deposit.
But thanks to the launch of this new scheme, things look set to improve. It is hoped that reducing the risk to the lender by the government offering compensation if a homeowner fails to make their mortgage repayments, it will encourage more 95% mortgages offers.
The scheme is open to first buyers and anyone looking to move in the UK – although second homes and buy-to-lets are not included.
The stamp duty cut
Stamp duty is the tax paid when you buy a property. The amount paid depends on where in the UK your property is and its price tag.
The government first announced a ‘holiday’ from stamp duty last year, which was due to come to an end on 31 March 2021. However, it has been agreed as part of the spring Budget to extend this offer by a further 3 months – until the end of June 2021 in England and Northern Ireland.
What does it mean?
Essentially, the cut means that if you are buying a home you won’t pay stamp duty on the first £500,000 – resulting in many of us not needing to pay a penny.
Talk to GD Legal
Buying a property can be stressful and the situation isn’t helped by having to decipher your way through all the jargon that’s out there. That’s why, here at GD Property Solicitors, we pride ourselves on keeping things simple. Giving you easy access to all the information you need, in a clear, accessible format.
Our experienced conveyancers are always on hand and ready to offer help and guidance, providing expertise on a wide range of conveyancing matters – including the government’s Help to Buy and Shared Ownership schemes.
Why not access your free instant quote right now or get in touch with the team on 0161 710 1786, email info@gdlegal.co.uk to find out more. We’d love to help.