The Chancellor announced continued support for the housing market following the success of the stamp duty scheme which has notably buoyed this sector during what has been a turbulent time for our economy.
Support will include a mortgage guarantee scheme that will help home buyers purchase properties up to £600,000, and an extension to the existing stamp duty holiday that was due to end 31 March 2021.
Mortgage guarantee scheme
The government will underwrite 95% of the risk of default. It will apply to home acquisitions up to £600,000 and set deposits required to 5%.
Stamp duty holiday
The present £500,000 threshold for paying Stamp Duty Land Tax (SDLT) was increased on a temporary basis and was due to end 31 March 2021. The nil rate band will continue to be £500,000 for the period 8 July 2020 to 30 June 2021. From 1 July 2021 until 30 September 2021, the nil rate band will be £250,000. The nil rate band will return to the standard amount of £125,000 from 1 October 2021.
This applies to England and Northern Ireland only. The devolved administrations have not announced any further extension beyond 31 March 2021 when this summary was written on Budget Day.
MJB Avanti can help you to prepare your finances for a mortgage application by completing the required tax returns and providing you with the correct SA302s. If you’re looking to apply for a mortgage and need to get your finances in order, call us on (08000) 388 799