Articles
Stamp duty scrapped on homes under 500k
In an effort to get the housing market going during the coronavirus pandemic, the Chancellor of the Exchequer Rishi Sunak announced a temporary change to stamp duty, the tax you pay when purchasing a home. From now until the 31 March 2021, home buyers in England and Northern Ireland won't have to pay stamp duty when buying homes costing up to £500,000. Usually, the threshold where you start paying stamp duty is £125,000 (£300,000 for first-time buyers).
First-time buyer demand surges but options are limited
The options for first-time buyers who do not have large deposits are diminishing because of the pandemic's impact. Although viewings and sales are now permitted, and there’s a stamp duty holiday on homes up to £500,000, the landscape is challenging for those trying to get on the property ladder without a big enough deposit.
Easing out of lockdown
Following months of lockdown and social distancing, large parts of England opened up on Saturday, 4th July. The easing of restrictions saw pubs, restaurants, cafés, hairdressers, barbers and hotels once again welcome customers through their doors, although they’ve been told to observe strict social distancing rules.
Turbulent times for lenders
COVID-19's impact has turned society, and many people's lives upside down. Neither the mortgage industry nor the housing market escaped unscathed from these turbulent times. The pandemic caught lenders by surprise, and some scrabbled to react, offering 90% loan to value deals one week and pulling them the next. For example, in June Virgin Money and Clydesdale Bank were among those to withdraw 90 per cent loan to value products, however, both lenders are now considering applications from people with 10% deposits.
Lenders reintroduce 90% mortgage deals
With the country slowly coming out of lockdown and the easing of restrictions, lenders are keen to get the housing market moving again. So they’re welcoming borrowers with open arms by reintroducing some of the products they scrapped when the COVID-19 crisis started, including 90% mortgage deals.
