The following update is from our Managing Director, Founder and trusted Advisor Keith Hood. Keith was asked to comment on the 2021 budget announcement by Caroline Culot of the Eastern Daily Press. You can find the full article by clicking the button below:
“as expected the Chancellor has extended the Stamp Duty holiday which will be a huge relief to those currently struggling to make the old deadline of March 31st, but new buyer will have to move fast if they want to buy now and benefit from the extension. My advice is to get your mortgage agreed-in-principle now, check that the solicitor you intend to use has the capacity to make the new deadline and make sure the person you are buying from is also motivated to complete before the deadline.
The 95% mortgage guarantee scheme is more important in that it has longer term implications for the housing market. The big benefits with this scheme are that it applies to all borrowers, not just first time buyers and its not aimed at new build. I think one of the biggest barriers to house purchase in the last 2 or 3 years has been the amount of deposit buyers have had to find. Its been at least 10%, but for many realistically, to get the amount they want to borrow they have needed to use lenders that require at least a 15% deposit. So this scheme will be a huge help for many and we hope now that lenders will support the scheme and offer the right interest rates, ie offering a 95% mortgage at rates you’d normally see for 75% mortgages. It’s a very similar scheme to the existing help-to-buy scheme for new properties and if it has the same impact you can expect house prices to rise”