Stamp Duty Holiday 2021

Listed Under: Blog

Just in time for the house buying season

Typically the approach of the Easter holidays signals the start of the house-buying season, with most people intending to sell their home waiting until the better weather for the all-important photographs to be taken, showcasing their property in the best light.

 

With the pandemic restrictions still in play, many people have been unable to make their intended moves in 2020, resulting in what could be a bumper season in 2021, once the restrictions are eased further.

 

The Budget statement last week gave some encouraging news for homebuyers, particularly with the extension of the Stamp Duty holiday through to 30th September.

There are two distinct dates here – for homebuyers of properties up to £500,000 who complete their transactions prior to 30th June 2021, they will pay no stamp duty. 

For transactions that do not complete until after this date, the threshold for paying stamp duty falls to £250,000 for home movers, or £300,000 for first-time buyers, until 30th September 2021.  

For those owning more than one property at the time their transaction completes, the additional stamp duty rate will still apply.

 

As we saw last year, this is likely to stimulate the market, with properties being snapped up very quickly when put on the market. However, as we saw last year, mortgage lenders and solicitors struggled with the demands of house buyers, and we could see a return of these problems this year.

 

If you’re thinking of moving home, and want to take advantage of the Government incentives, it’s important to get your “house in order” and get mortgage-ready.

Make sure you have all the documentation that lenders may want to see:-

  • 3 months payslips
  • 3 months bank statements showing your salary credits, and bill payments.
  • Identification – typically passport and driving licence – make sure that your driving licence is in your current address and is in date. 
  • Details of all of your credit commitments.

It’s also important to make sure you can borrow what you need.  Most lenders offer an Agreement in Principle service where you can give them your personal and financial details, and in return, they will give you a certificate to show what you are able to borrow from them.  Every lender has its own criteria – some are more generous with the amounts they will lend.  It’s important that prospective homebuyers are matched to the right lender. 

 

At Glenrose, we offer independent mortgage advice, and can guide you through the mortgage market, from knowing what you can afford to borrow to making sure you are matched to the right lender and deal – and everything else that goes with buying a house!

 

Appointments are available either via telephone or video call, with face-to-face meetings to be re-introduced once restrictions are sufficiently lifted, and it is safe to do so. 

 

And the best bit, we don't charge broker fees for mortgage advice!

 

Please contact us for further details, or book an online meeting here