So it’s that time of year. The Government has set out it’s budget for the next year. Normally created with groans of austerity and how they are lining their own pockets, it really seems that the Government has given a very positive budget, especially in the housing market. Here are some of the key announcements:
The Help to Buy Equity Loan scheme will be extended by two years
This scheme for new-build properties is designed to help those with 5% deposits get on the housing ladder. The Government lends you up to 20% of the property price and after five years you’ll have to start paying interest on the loan. The scheme was due to end in 2021, but has now been extended until 2023 but this will be in a watered down form.
From 2021, it will only be open to first-time buyers and lower regional price caps will be applied. For more information, please leave an enquiry and we’ll put you in touch with a suitable mortgage specialist.
Stamp Duty Changes
For first time buyers of traditional owners ship and shared ownership properties, there will be nil stamp duty on any property worth £300,000 or less for properties purchases in England or Northern Ireland. There’s no change for purchasers in Scotland or Wales.
In England and Northern Ireland, the new stamp duty rates for first-time buyers purchasing shared ownership properties from 29 October 2018 costing up to £500,000 are as follows:
- Up to £300,000 purchase price: 0% stamp duty
- £300,000.01 to £500,000: 5% (on that portion of the purchase price only)
Previously, purchasers still had to pay the tax even though all other first-time buyers were exempt on the first £300,000 on properties valued at up to £500,000 – a change which came into effect from the previous Budget last November.
The stamp duty relief will be extended to properties already bought by first-time buyers under the shared ownership scheme since 22 November 2017, provided they were valued at £500,000 or under – to get this refund, you’ll need to write to the Stamp Duty Land Tax Office.
To discuss any first-time buyer or shared-ownership enquiry, please leave an enquiry and we’ll put you in touch with a suitable mortgage specialist.
Bad Credit & Debt
Here at Take Care of My Mortgage, we get lots of enquiries about Bad Credit Mortgages, defaults, CCJ’s etc. In the 2018 Budget, the Government have rolled out a scheme called “Breathing Space”.
In short, the scheme will give creditors 60 days in which interest will be frozen, no further charges can be added and no enforcement action can be taken against the debt. The 60 days is essentially there to help sort their finances out within a couple of months.
It’s good news and will hopefully help people get back on track and not have to resort to Pay Day Loans to repay lingering debt repayments.