Well that was not the most of exciting of Budgets, although it could
have been a lot worse. It does seem like the spending taps have been
turned slightly on, rather than off!
On the up side, Stamp Duty
Relief has been extended to first time buyers purchasing shared ownership homes
valued up to £500k. Shared ownership meaning that you buy a percentage
share of the property and rent the remaining amount from the housing association,
normally with the option to ‘staircase’ (buy more of a share) at a later
date. This can be a good way to get onto that first step onto the
property ladder, although you do need to cater for the additional rent payments
and normally there are ground rents and service charges relating to the
property to also take in to consideration.
The Government backed Help to
Buy scheme, which was due to expire in 2021, is to be extended to 2023 for
First Time Buyers.
Landlords took another hit as private residence relief on Capital Gains
Tax is now only available if the landlord lives in the property with the
tenant! Landlords and tenants sharing properties is something currently
not well catered for by mortgage lenders!
In other news, Virgin Money
have scrapped their guarantor mortgage citing lack of use and that many lenders
now prefer parents to be joint borrowers on the mortgage itself. A number
of lenders now offer joint borrower, sole proprietor mortgages.
Finally, there have been a
number of changes over the last few days with some rates increasing and some
decreasing. TSB, Secure Trust Bank, Precise Mortgages, Nationwide, Family
Building Society, Together Money, Kensington Mortgages, Coventry and Accord
Mortgages have all issued product updates. It is a volatile market
currently and the uncertainty of Brexit is making an impact across the whole
market. Therefore, if you are looking to review your mortgage and have
been offered a respectable and appropriate deal, do your homework, review all
options, but don’t hang around!
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