Plans To Extend Stamp Duty Holiday To June | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 24/02/2021

When Chancellor Rishi Sunak announces the spring budget next week, it is expected that he will extend the Stamp Duty holiday until the end of June.

Although no official announcement about the plan has been made yet, as we reported earlier this month, there has been pressure on the Government to extend the Stamp Duty holiday as many buyers are struggling to get their house sale completed before the current Stamp Duty holiday ends on the 31 March 2021.

In addition to this, the housing market has already started to slow down and some experts believe that extending the Stamp Duty holiday will help prevent a downturn in the housing market. More information about the Stamp Duty holiday and how much it can save house buyers can be found here.

Saying this, at the moment the Government has not confirmed a Stamp Duty holiday extension will take place, and as such home buyers should still look to complete before the 31 March 2021 in order to be certain that they will benefit from the tax holiday.

Will a stamp duty holiday extension include buy-to-let properties?

The current stamp duty holiday does include buy-to-let (BTL) properties and second homes, but those purchasing these types of properties should be aware that additional taxes may still be applied when they complete during the stamp duty holiday.

If the stamp duty holiday is extended, this could be a good opportunity for new landlords to invest in their first BTL, as research we published this week found that year-on-year there has been an increase in the percentage of deals available to first-time landlords, suggesting that lenders are willing to approve mortgages for new property investors.

Those considering this option but who do not currently have enough funds to purchase a BTL property and who want to benefit from the likely stamp duty holiday extension may want to consider using a secured loan or bridging loan in order to buy the BTL property quickly.

Secured loans and bridging loans are usually approved within days, unlike the weeks or sometimes months it can take to secure a mortgage, making it a possible option for those wanting to buy quickly. Those considering a secured loan should be aware, however, that these loans usually require the borrower to put their house as an asset against the loan, meaning that if they fail to make repayments it could result in them losing their home. Find out more about secured loans or speak to our preferred secured loans broker. Borrowers can get an indication of how much they could borrow with our calculator.

Another option for those who want to complete a property purchase quickly is to use a bridging loan. Again, although these loans can be approved quickly, usually within days, they do have the same risk as secure loans in that if repayments are not met the borrower could lose their home. More information about these types of loans and how they work can be found on our bridging loan page.

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