What the Budget means for Homebuyers.

Here in the office at Love Homes Estate Agents, we were waiting for the budget with baited breath. And Mr Sunak has not disappointed. As the country begins to think about emerging from the social restrictions of the pandemic, and rebuilding the economy, the chancellor has unveiled his plans for the property sector.
In a move that will surely bring a smile to all those trying to get onto the property ladder, struggling first-time buyers will be able to secure a mortgage on properties up to the value of £600,000 with just a 5% deposit. This effectively reduces by half the amount that first-time buyers will need to buy their home. In real terms, that means a deposit of £10,000 – previously £20,000 – will secure a £200,000 home.
The government backed initiative will launch next month and will be available up to December 31st 2022. Currently, Lloyds, NatWest, Santander and Barclays will be offering 95% mortgages, with other lenders, including Virgin Money set to follow suit ‘shortly after’.
With 95% loan-to-value (LTV) lenders having withdrawn this product as being too high risk in the wake of the pandemic, the opportunity to buy a home seemed far out of reach for many first-time buyers and in fact, in January of this year, there were only 8 such lenders. This new mortgage guarantee will now unlock the property market to younger buyers who have been trying to compete with a surge in house prices that has outstripped salaries, and even more so as it is not restricted to new builds.
The budget also brought news about stamp duty thresholds. Currently, the threshold stands at £500,000 but this was due to return to the original rate of £125,000 on July 1st. Under the chancellor’s new announcement, the threshold will now reduce to £250,000 between July and September, not returning to the original £125,000 until October 1st.
These exciting announcements represent a positive move towards starting to rebuild the economy on firm foundations (pun intended!) and are a step in the right direction to, as the Prime Minister previously put it, ‘turn Generation Rent into Generation Buy’.
As always, Love Homes Estate Agents are here to help you with every aspect of your home purchase so if the budget has brought a new home within your reach or if you would like to explore the properties we have to suit you, our experienced staff is here to help. Call today on 01995 213101 or send us an email now: hello@lovehomesestateagents.co.uk

Hello world!

Welcome to Our Blog!

We are Love Homes Estate Agents, a local, independent, family run estate agency in Lancashire.

We have a reputation built on trust, value and customer satisfaction. We possess a wealth of knowledge about the areas we cover and we have worked tirelessly to build a fresh approach to helping people buy and sell properties.

We look forward to sharing news, advice and behind the scenes with you in the future.