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What does the budget mean for home movers?


This week’s budget has delivered some good news for home movers. With the current stamp duty holiday extended until the end of June, the doubling of the nil rate stamp duty band and the introduction of a new 95% mortgage guarantee scheme, there are lots of reasons why now could be a good time to purchase a new home.


Here is a summary of some of the key elements of the budget, that could impact home buyers:


Stamp duty holiday extended

The current stamp duty holiday for home buyers in England and N Ireland (on homes up to £500,000) has been extended. Instead of finishing at the end of March as originally planned, this has now been extended until 30th June 2021, giving you more time to complete on your house purchase and capitalise on this cost saving.


Stamp duty ‘nil rate’ band will be doubled until September

Prior to the stamp duty holiday being announced, the threshold, above which you have to pay stamp duty in England was set at £125,000. However, to ease the transition in the property market following the end of the stamp duty holiday on 30th June this year, the Chancellor has announced that this threshold will be temporarily doubled, to £250,000. It will return to the usual threshold of £125,000 on 1st October 2021.


The introduction of a new 95% mortgage guarantee scheme

The new, government backed mortgage guarantee scheme is designed to help those with smaller deposits, by reducing the typical level of deposit required to obtain a mortgage. The 95% mortgages will be available to all buyers (on properties costing up to £600,000) and buyers will also be able to fix their initial mortgage rate for at least five years. 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.


For our purchasers at BoKlok on the Brook, we already have the government Help to Buy scheme available, which allows you to buy with a 5% deposit. However, for those not wishing to use Help to Buy, or those who may be looking to take a second step up the ladder, the new 95% mortgage guarantee scheme could offer an attractive proposition. The new scheme will reduce the amount that buyers need to save before buying a home, making home ownership more accessible for those with a smaller deposit level.










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