At part of today’s 2021 Budget announcement, the UK Government has confirmed that a mortgage guarantee scheme will be available from next month, which is exciting news for home buyers who are looking to reserve a new home with a deposit of just 5%.
Full details are yet to be released, however the scheme will enable home buyers to secure 95% mortgages, helping more people to get onto the property ladder and the great news is that it’s not just for first-time buyers.
The Government also confirmed that the Stamp Duty holiday will be extended until the end of June, and that there will be a phased return back to the normal Stamp Duty Tax payments – here’s a breakdown of the key dates and figures released so far:
- From today until the end of June home buyers will pay no Stamp Duty Tax on homes up to the value of £500,000
- From July until the end of September the tax free amount will reduce to £250,000
- From October, the Stamp Duty Tax holiday will come to an end, with the tax free amount returning to £125,000
The Stamp Duty holiday means that all first-time buyers and home movers in England will only pay Stamp Duty tax on properties that are valued above £500,000. Before the holiday was put in place, home buyers paid Stamp Duty tax on any home over the value of £125,000, unless they were a first-time buyer, for which the cap was £300,000.
Based on a house purchase price of £280,000, you would save £4,000 in Stamp Duty thanks to the holiday. This saving will help more people to move along the property ladder and enable first-time buyers to opt for a larger house of a higher value, without the added cost of Stamp Duty tax. The maximum saving you could make is £15,000 if you were to purchase a home worth £500,000.
The mortgage guarantee scheme isn’t available just yet, but now is the perfect time to start thinking about your move to a beautiful new Story home. With a smaller deposit and more Stamp Duty savings you might be able to afford more than you think. Our Sales Executives are on hand to help, you can find their contact details on the development pages of our website. Please note that this does not apply to our developments in Scotland, however we have a range of schemes to help get you moving if you’re interested in a Story home in Scotland – just get in touch with our Sales Executives to find out more.