What is Stamp Duty And What Does A Holiday Mean For Buyers?
In England and Northern Ireland, stamp duty is payable when you buy a property or piece of land worth more than £125,000 (unless you’re a first-time buyer) or over £40,000 if it’s for a second home.
In reality what that means is that if you were buying a house for £300,000, you’d pay nothing on the first £125,000, 2% (or £2,500) on the next £125,000 and 5% (or £2,500) on the final £50,000. That would bring your total stamp duty on a £300,000 property to £5,000.
This announcement meant that properties up to £500,000 will fall within the 0% stamp duty threshold until 31st March 2021, so £0 would be payable for the same £300,000 house. You can read more here on the holiday.
What’s the Current Situation?
A house purchase must be completed by the 31st March 2021 to take advantage of the holiday.
According to historic data, Zoopla suggests that 81% of mortgage applications in December, and 54% in January, complete by the end of March – so there’s still hope.
One thing we will say is that there are a higher number of transactions taking place at the moment, so lenders are encouraging applicants to act sooner rather than later.
How Can Mortgage Buddy’s Advisors Help?
Part of our process is to check that your advisor is excellent. We make sure that during the whole process, your application is where it should be to keep things moving as quickly and efficiently as possible.
We cannot guarantee that mortgage applications being submitted now will be able to take advantage of the stamp-duty holiday BUT we can try our best to put you in the best position you can be in.