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Great News For Homebuyers as Stamp Duty Holiday Extension is Announced

In a bid to give a boost to the property market and mitigate the economic crisis caused by COVID-19, Chancellor of the Exchequer Rishi Sunak announced that the Stamp Duty holiday will be extended.

Great news for homebuyers

The Stamp Duty holiday on properties up to £500,000 will be extended from March 31st to June 30th, and from July 1st, the holiday will apply only to properties up to £250,000, which will last until the end of September.

The pre-Covid stamp duty thresholds will then resume on October 1st.

Chancellor of the Exchequer Rishi Sunak stated: 

“The cut in stamp duty I announced last summer has helped hundreds of thousands of people buy a home and supported the economy at a critical time. But due to the sheer volume of transactions we’re seeing, many new purchases won’t complete in time for the end of March.”

Hundreds of thousands of buyers are set to save up to £15,000 now that the six-month extension has been announced. Those who were at risk of not completing before the March deadline, can now rest assured knowing they will be able to complete comfortably now that the extension has been announced.

5% mortgage guarantee scheme announced

The chancellor also announced a new policy that will see the government guarantee mortgages for those who can only afford a 5% deposit, making it easier for prospective home buyers to get onto the property ladder. The scheme will be available to first-time buyers and current homeowners looking to purchase a home for up to £600,000. He stated:

“Lenders who provide mortgages to homebuyers who can only afford a 5% deposit will benefit from a Government guarantee on those mortgages.

‘I’m pleased to say that several of the country’s largest lenders including Lloyds, NatWest, Santander, Barclays and HSBC will be offering these 95% mortgages from next month, and I know more, including Virgin Money will follow shortly after.

‘A policy that gives people who can’t afford a big deposit the chance to buy their own home. As the Prime Minister has said, we want to turn generation rent into generation buy.”

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