Mortgage deposit sizes can vary widely across the UK and they can depend on a number of factors. For those in large cities, it can take many years to save enough money to buy a property and new research from Coulters Property has highlighted the best UK cities where savers can build deposits in the shortest time frame.
The stamp duty rules will be reverting back to their original set up come March 31 2021 and according to MoneySuperMarkets findings, the average property purchase takes 123 days to complete.
This means that from today, homebuyers have just 20 days remaining to find a property and submit a mortgage application in order to complete in time to take advantage of the government’s stamp duty changes.
This could create a rush of activity, as the new research revealed 63 percent of prospective buyers in the UK are in the market as a result of the scheme.
The changes also encouraged sellers to take action, as 57 percent of homeowners were encouraged to put their home on the market this year and overall, 71 percent of British people would like the government to extend the scheme beyond the March deadline.
According to MoneySuperMarket, buyers in the following regions will see the biggest savings thanks to the stamp duty changes:
- South West – Anticipated saving: £7,098
- London – Anticipated saving: £6,768
- South East – Anticipated saving: £5,422
- North East– Anticipated saving: £5,389
- East Anglia – Anticipated saving: £4,653
Emma Harvey, the director of mortgages at MoneySuperMarket, commented on the research: “As it stands, the stamp duty holiday scheme is due to come to an end on March 31 meaning prospective homebuyers have just 20 days left from Monday 9th November to find a property and apply for a mortgage in order to complete within the average 123 days it typically takes to purchase a home.
“During this second lockdown, estate agents and lenders have adapted quickly to ensure housing market doesn’t stand still.
“Viewings are still going ahead with measures in place, while lenders are also continuing to work hard to get sales through.
“As our research shows, the stamp duty holiday has proven successful in attracting both buyers and sellers to the property market at this difficult time for the economy.”
Emma continued: “It’s clear that many would like to see the scheme extended and we believe the government needs to put in place longer term support for the housing market.
“While the stamp duty holiday has brought buyers to the market and lenders have never been busier, challenges still exist for those seeking to buy their first home – not least with regards to the availability of appropriate mortgages.
“This is why the government is proposing new measures to increase the availability of mortgages for those with a five deposit and we look forward to seeing these proposals in greater detail.
“If you are hoping to move home, it’s important to remember that the larger the deposit you are able to put towards your property, the better. It will bring down your loan-to-value ratio and could give you access to the lower interest rates with lenders. If you’ve been able to save any additional funds during the year, this will certainly be beneficial.
“Should you have a change to your circumstances including starting a new job or unexpected unemployment during the completion on a property, it is important to be honest with your lender and inform them of what has happened, so they can provide the correct support.”