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Spring Budget 2021: How might it affect how you buy your next home?

Posted on March 31, 2021

The announcement of the Spring Budget was much anticipated this year, especially as we look forward to getting the economy back on track, and our personal and professional lives at some stage of normality once more.

The Spring Budget brought news for every industry, with the property sector in particular set to benefit from the various extensions and initiatives announced by Chancellor Rishi Sunak. Here we take a closer look at how the recently announced changes could affect how you buy your next home.

Stamp Duty Holiday extended

One piece of great news for homebuyers has to be the extension of the Stamp Duty Holiday. First introduced in July 2020, the Stamp Duty Holiday was developed to help revive the recovering property market. As a sector still in need, the extension has been welcomed by all those within the industry.

As before, house purchases made in England and Northern Ireland up to the value of £500,000 will be exempt from any stamp duty payments. The extension will save each home buyer thousands of pounds and make moving more accessible for many more.

The Stamp Duty Holiday will now end on 30th June 2021, and to be eligible, your purchase must be completed by this date.

Mortgage Guarantee Scheme introduced

Low deposit mortgages were thought to become a thing of the past due to the impact of the Covid-19 pandemic, but the government-backed Mortgage Guarantee Scheme is set to change this.

The new scheme is due to launch in April and will give those eligible the chance to purchase a property worth up to £600,000 with a 5% deposit. The government will then guarantee part of the 95% loan, providing a way for lenders to recover some of the loan should the buyer default on its repayment. The guarantee has already attracted a number of lenders, with HSBC, Lloyds, Santander and Barclays pledging to provide their own government-guaranteed mortgages from next month.

The Mortgage Guarantee Scheme is open to both first time home buyers and existing homeowners, and will provide all those who are eligible with a way to get on or move up the property ladder without having to shell out for a huge deposit.

Ready to purchase your next home?

If you’d like to take advantage of the property market related Budget changes mentioned above, then you’re in the right place! Start your search for your new home right here.