Budget 2021: Homeownership, FTBs, mortgages and stamp duty

Zarah Gulfraz

3-minute read

Last updated on:

March 3, 2021

Budget 2021 was a big one for the nation's finances.

Chancellor Rishi Sunak attempted to begin balancing the books while trying to ignite the economy.

Housing was one of the key priorities.

5% mortgage guarantee scheme

Finally!

It's clear the government wants to help get more people a mortgage and get more people on the property ladder.

Mr Sunak said deposits remain a 'significant barrier' to most homeownership dreams.

That means more 5% mortgages are needed. And banks need to feel more confident lending at 95% LTV.

And that will lead to a flood of new 95% LTV mortgages from the likes of Lloyds, NatWest, Santander, Barclays and HSBC from April.

The Chancellor reiterated the Prime Minister's sentiment, saying: "generation rent will become generation buy".

There's more detail on the 5% mortgage government guarantee scheme here.

SDLT holiday extension

You will not pay Stamp Duty (SDLT) below the £500,000 band until the end of June – a policy that was due to end on March 31st.

First introduced in July 2020, the Stamp Duty holiday has had a big impact on the housing market. 

The Chancellor said 100,000s of people had been able to buy a home due to the scheme, which had helped many save up to £15,000 and saw house prices hit new highs – even during the wider economic downturn.

But with an artificial rise in demand, there have also been significant delays to the home-buying process, with many of you worried you may miss out on the holiday and its savings. 

You now have a further 4 months to find a property and get your mortgage completed.

Furthermore, there will be no Stamp Duty on purchases up to a value of £250,000 until the end of September.