Budget 2021: Extension to Stamp Duty nil rate band and a new mortgage guarantee scheme
03 March 2021
In a bid to turn ‘Generation Rent’ into ‘Generation Buy’, the Government will implement a new mortgage guarantee scheme and extend the temporary increase in the residential Stamp Duty Land Tax (SLDT) relief.
The SLDT nil rate band was increased to £500,00 across England and Northern Ireland until 31 March 2021. This has been extended until 30 June 2021. In addition to this, between 1 July 2021 and 30 September, the nil rate band reduces to £250,000. It will not return to its original value of £125,000 until 1 October 2021. Funding is provided to the Scottish and Welsh governments for comparable support.
A new mortgage guarantee scheme is to be implemented from April 2021, up until 31 December 2022. This will allow individuals who have a deposit of 5% or above to secure a mortgage on a home up to the value of £600,000. Buyers will have the option of securing their original mortgage rate for a minimum of five years. It is hoped that the scheme will allow more people to buy their homes despite having only a small deposit.
The Budget document is available in full here.
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