Extension to Stamp Duty Holiday
In his February Budget, the Chancellor announced an extension to the Stamp Duty Holiday in England. Previously, this was set to come to an end on 31st March 2021. But following calls from the market, the scheme is set to now run until the end of June.
Read more about this scheme in our earlier article, Temporary Stamp Duty cut for some purchases.
What this means for home purchases
Adam Nanson, Independent Mortgage Broker from Your Mortgage Expert in Salisbury comments: “Earlier this year we expressed our concern about this scheme coming to an end. Our worry was that home buyers might find themselves unable to complete on their property purchase due to the process taking them beyond the deadline. So, we are pleased to hear an extension to the Stamp Duty Holiday.
“Stamp Duty is one of the biggest expenses most home buyers have to build into their budget. For many, especially for First Time Buyers, one of the biggest barriers to purchase is often affordability. So anything that helps with this is a great thing.
“The other great news is that the Chancellor also announced that stamp duty holiday will not abruptly end. Instead, the scheme will take a tapered step after June allowing purchases up to £250,000 to benefit from Stamp Duty relief until the end of September.
“The move by the Chancellor means home buyers in England and Northern Ireland will pay no stamp duty on their main residential purchase with a purchase price up to £500,000. According to Rightmove website data, an additional 300,000 home buyers could purchase before the new deadline. Which could save home buyers around £1.75 billion in total*.”
The SDLT calculator provided by HMRC has been updated to reflect the new rates and can be found here: https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro
How Your Mortgage Expert can help
Adam Nanson continues:
“June may seem a long time away. But, with the average house purchase taking around 12 weeks, buyers don’t have long to act should they wish to complete before the holiday comes to an end.
“With all this in mind, if you are considering purchasing in the near future, we would recommend you seek independent mortgage advice. At Your Mortgage Expert, we understand how the mortgage market is currently working. What new information lenders are asking for as part of their new Covid-19 financial checks. We also understand what the current service levels are and how much longer your application is likely to take.”
If you are interested in having a no obligation chat about your mortgage or about any of the questions we have raised in this article about the Extension to Stamp Duty Holiday, why not get in touch? We don’t charge anything up front, so by speaking to us, you are under no obligation. We are based in Salisbury, Wiltshire, but we can help you no matter where you live in the UK. We can also talk about how the Extension to Stamp Duty holiday can help Buy to Let investors.
Simply call us on 01722 322683 or complete a contact us form on our website and tell us when it would be best to get back in touch with you.
The information contained within this article was correct at the time of publication. It is intended for information only and does not constitute advice. Neither Your Mortgage Expert Ltd nor TenetLime Ltd cannot be held responsible for information that was correct at the time of publication but subsequently changes or goes out of date due to changes in legislation. For further information, contact Your Mortgage Expert on 01722 322683.
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