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Budget Changes Explained!

Reading Time: 3 Mins Read

The chancellor of the exchequer Rishi Sunak has made a number of announcements in the 2021 budget today which are designed to continue the strong activity levels in the property market and to help First Time Buyers get on the property ladder. Laurels Managing Director, Robert Muat, outlines the changes below and explains how they can help you!

“Even without a trip abroad we’ve still managed to get a holiday and even a mini-break as well!

The UK government announcing a stamp duty holiday extension until Wednesday 30th June 2021 was the worst kept secret in the country for the past few weeks. The extension is designed to get more people moving but also to help de-stress the thousands of people who are currently embroiled in the sales backlog. This extension will ensure the vast majority of current buyers will secure the savings that are enabling them to move whilst at the same time it will tempt more people to move in the coming months as opposed to later in the year!

The actual secret stash that Rishi has provided the nation is the Stamp Duty holiday extension until September 2021 for up-to £250,000. This will provide everyone a £2,500 saving (if purchasing at or above £250k) until September and will help First Time Buyers as they comprise the a good majority of buyers at this level. This is a very good change and could provide possibly pre-empt a permanent change…?!

“A much needed boost for First Time Buyers with what can often be the most difficult part of getting on the property ladder; the deposit!”

The Mortgage Guarantee is a tool which we’ve seen come out of the Governments handyman belt before and based on recent history it will get the job done and help fix a recurring issue for many First Time Buyers.

We currently understand that the Mortgage Guarantee will be:

Available to all UK First Time Buyers with a 5% deposit

Available to be used on all house purchases (not just new build homes)

Available via numerous high street banks and lenders

Available from April 2021

Available when purchasing a property up-to £600k

At present it is not known what interest rates will be attributed to these 95% mortgages however the fact that numerous high street banks/lenders are involved is cause for optimisim as there should be a significnat amount of competition to stop huge interest rates. Time will tell on this point but it is good news nonetheless!

What to do now? – Current Homeowners

It is vital if you are looking to make the next step up the ladder (take advantage of the likely increase of buyers) that you secure good financial advice and, if needed, an up-to-date sales or lettings valuation on your property. We can help with everything…

BOOK A VALUATION with Laurels

What to do now? – First Time Buyers

Get good advice and be pro-active! We can and will help with everything!

Send us a message and we will put you in touch with our fantastic, award winning, mortgage brokers plus we will also get you in too see some fantastic properties!

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