Having heard the Chancellors speech on the Budget, how does this affect you and your personal position? Whether that be because you are a first-time buyer or re-mortgaging your home, below are the key facts we have taken from the budget which could make a difference for you.
- Stamp duty cuts will remain in place until March 2025. This means there is still no stamp duty due on the first £250,000 of a property’s purchase price. The previous exemption threshold was set at £125,000. Unless you are a first-time buyer meaning you will pay no stamp duty on the first £425,000 of a property’s purchase price up to a maximum value of £625,000.
- Tom Bill, head of UK Residential Research at Knight Frank said “for anyone buying or re-mortgaging, the message is that the mortgage rates should continue to edge downwards in coming months and the stability of recent weeks will continue”.
- Another mortgage expert, Emma Hollingworth, said: “The Chancellor’s decision to extend stamp duty cuts until 2025 is a very welcome measure that will bring a degree of continuity, stability and security to a market” and “this will give those looking to buy a home time to consider their options and, with brokers’ support, to make the best decision for them”
- Decrease in house prices forecast: We are possibly due to see the value of houses fall by as much as 7.9% next year, followed by some stability until 2027 according to a forecast from the Lloyds Banking Group, which owns the Halifax. This should help first-time buyers to find more affordable properties, giving them a chance to have their own home earlier than planned.
Overall, from the key bits of information we have been given, there are some positive points that can be taken from the budget announcement. Lenders are gradually bringing rates down and having stamp duty cuts remaining in place for a few more years, buying a home and re-mortgaging is still a viable option for many.
Give us a call on 07833 414593 or email enquiries@trustedmortgages.co.uk to see how we can advise you and help you in the next steps in your mortgage process.
