Mortgage Market Update: Stamp Duty July 2020

Mortgage Advice in Liverpool

Following the latest government Stamp Duty holiday announcement, the mortgage market has significantly improved. However, the market is still lacking high loan to value mortgages, hopefully this will improve sooner rather than later. As a Mortgage Broker in Liverpool, we have been seeing more confidence within the mortgage market. People are beginning to become more comfortable. During the announcement, the government announced the changes to Stamp Duty and provided some guidelines for home buyers and owners:

• The Stamp Duty holiday will last until 31st March 2021
• If you already have the 10% it’s handy to continue saving up and turn it into a 15%, meaning less future interest
• 90% loan to value mortgage are still available but for a very short period of time
  

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Mortgage market update

There are some really low rates on offer, but with only the odd exception, as things stand you need 15% deposit. You are okay with 5% deposit for a new build from your own funds, which can be topped up to 25% with the government Help to Buy Equity loan.

Some lenders are drifting in and out of 90% loan to value but we really need the “big banks” to play ball before the market can return to normal. They are struggling to get people back into the office and get back to full capacity but are also concerned at job loss data and they don’t want to have to repossess any customers who might end up in negative equity. Once things stop holding them back, everything should slowly start returning to normal.

Demand continues to outweigh supply in terms of residential property so there has been nothing dramatic happening yet on house prices. We are seeing multiple people going for the same house so it’s vital you get an Agreement in Principle before making an offer.