Mortgage deals, especially those with high loan-to-value rates, have vanished in recent weeks as lenders tightened their lending criteria. Earlier in the year, Rishi Sunak and the wider government reduced stamp duty rates to boost the industry but new research shows that they may be having a limited impact.
“This is putting property chains at risk of collapsing.
“At this point in time, it is important that lenders keep lending – they must ensure buyers have access to the finance needed to complete on a purchase.
“Failing this, the Stamp Duty holiday will only have a limited effect.”
The stamp duty holiday (or reduction) was introduced in July and will last into 2021 under current plans.
Currently, the stamp duty threshold for residential properties is £500,000 but this will change on April 1, 2021.
Where stamp duty is due, an SDLT return must be sent to HMRC and the tax must be paid within 14 days of completion.
This needs to be noted as the person involved may be charged penalties and interest if they do not make the payment within this time frame.
Usually, if there is a solicitor, agent or conveyancer involved they’ll file the return and pay the tax on the buyer’s behalf.
Additionally, they should also claim any relief the buyer would be eligible for, which would affect those buying for the first time.