STAMP DUTY HOLIDAY DEADLINE
Navigating the changes to Help to Buy
how we could help your customers?
By Liza Campion, Head of Corporate Accounts, Precise Mortgages
With the extension of the Stamp Duty Land Tax freeze and the reintroduction of 95% LTV government mortgage guarantee scheme for loans on properties up to £600,000, the recent Budget hopefully came as good news for many prospective residential buyers – especially for those with smaller deposits or who have felt unsure about their financial situation over the last few months.
But where does this leave first-time buyers investing in new-build assets? What options remain for them when it comes to stepping on the property ladder?
The Help to Buy Equity Loan scheme has helped finance the purchase of more than 278,000 new build properties since its launch almost eight years ago. However, from 1 April 2021, the existing Help to Buy Equity Loan Scheme (2013-2021) will be replaced with the new Help to Buy Equity Loan Scheme (2021-2023) and will be available exclusively to first-time buyers purchasing a new-build property.
This date also signals the introduction of regional property price caps, with each area of the country having a maximum property value that will be eligible for the scheme.
As with the existing scheme, first-time buyers will still be able to borrow up to 20% of the cost of a newly built home, or 40% if they are purchasing in London. Buyers must pay a minimum of 5% deposit and then use a Help to Buy mortgage to fund the remaining cost of the property.
It’s key to remember that this only applies to the Help to Buy Equity Loan scheme in England. The changes don’t apply to the Help to Buy Schemes in Scotland or Wales and our existing 2 year and 5 year fixed rate products will apply to all schemes.
So how can Precise Mortgages help you?
With our efficient service and wide range of solutions, Precise Mortgages supports new-build customers and those that have been turned down by high street lenders.
With only a 5% deposit being required, including gifts from family members, we can support both employed and self-employed clients looking to step onto the property ladder. We offer pound-for-pound remortgages, with the option for staircasing also available.
Combining our Help to Buy products and criteria, along with our five star service and commitment to supporting your residential customers, you have the chance to support those struggling to take that first step onto the property ladder.
Take a look at our Help to Buy Product Guide for more information on our range and download our ‘Right First Time’ checklist to ensure you’re sending us all the correct information when you submit your next case.