Property with Potential weekly round up — Budget edition
So a week ago today Rishi Sunak stood up and announced his budget, now we’ve had some time to digest what he’s announced we thought we’d give a quick run down for what it means for homeowners and those who are about to buy their homes. Plus, a few more stories to see you in to the weekend. No property of the week but we will have something very special for next time so do make sure you check in.
Halifax has said that the budget removed uncertainty for house buyers
Halifax, part of Lloyds Banking Group and the UK’s largest mortgage lender has said the extension of the stamp duty holiday has “removed uncertainty” for those completing house purchases.
Stamp duty relief in England, Northern Ireland, and the equivalent in Wales, have all been extended.
The Halifax said UK house prices in February were 5.2% higher than a year earlier, averaging £251,697.
Russell Galley, managing director at the Halifax, said: “The government’s decision to extend the stamp duty holiday — one of the main drivers of demand from home movers during the pandemic — has removed a great deal of uncertainty for buyers with transactions yet to complete.
“The new mortgage guarantee scheme is another welcome development from this week’s Budget. Whilst mortgage approvals have reached record highs in recent months, hitting levels not seen since before the financial crisis of 2008, raising a deposit continues to be the single biggest hurdle for first-time buyers to overcome.”
The tax break for will now continue until the end of June.
First time buyers get a wider choice of mortgages
Chancellor Rishi Sunak confirmed that a new government guarantee means first-time buyers should get a wider choice of mortgages that require a deposit of just 5% of the loan. This will be available when buying properties worth up to £600,000.
Under the chancellor’s new guarantee scheme, the government will act as a safety net for lenders to incentivise them to offer these low-deposit mortgages. Whilst details of the mortgage packages are not yet available, although Santander, Lloyds and HSBC have announced that they will be taking part.
Is a Buying a Spanish Ghost Town the Ultimate Social Distancing Project?
So, politics aside, how the Covid-19 pandemic has made many city dwellers reassess their relationship with all things urban. In June and July 2020, buyer inquiries to Rightmove from those living in cities shot up by 78% compared to the previous year. The number of people considering properties in village locations, meanwhile, was up 126%.
It’s not just villages in the UK that are attractive to buyers looking to escape city life right now. According to the property experts at CostaLuz Lawyers, Spain has much to offer when it comes to escaping the pandemic, particularly for those looking to detach from urban life in a more substantial way.
“Spain is home to around 1,500 abandoned hamlets due to significant rural depopulation over the past couple of decades. These offer a fascinating opportunity for property buyers who want to opt out of city life and reconnect with the land. And with so many hamlets available, the prices can be really quite attractive.”
But buying your own Spanish ghost town isn’t just about ancient farmhouses that are slowly crumbling in idyllic rural locations. When the global financial crisis hit, a swathe of developers across Spain went bust, leaving housing projects of all shapes and sizes unfinished. Some have little more than foundations in place, but others are almost finished. Most are now owned by the banks that took them on from bankrupt developers. As the sites are too expensive to demolish, most are just sitting unfinished, with nothing having happened since workers downed tools when the financial crisis began to bite.
ADVICE: How to Save Hundreds on Your Annual Heating Bill and Get Help With Energy Debts
With energy bills set to rise by up to £96 in 2021 for 15-million families due to Ofgem’s price cap increase, UK boiler installation company, Boiler Central has compiled a list of government grants, benefits and expert tips to help you cut costs on your heating bill without compromising on comfort.
UK Grants and benefits
Cold Weather Payments
What is it?
One-off payments to help with heating costs each time the temperature drops below a specific temperature for a certain period.
Who is eligible?
Those that already receive any of the following benefits: Pension Credit, Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance or Universal Credit.
Winter Fuel Payment
What is it?
An annual, one-off payment to help you fund fuel costs during winter.
Who is eligible?
Those born on or before 5 October 1954.
Warm Home Discount Scheme
What is it?
£140 off your electricity bill (as long as your supplier is signed up to the scheme).
Who is eligible?
If you’re on a low income or getting the guarantee credit part of Pension Credit, you may be eligible to apply.
Green Home Grants
What is it?
A voucher towards the cost of installing energy-efficient improvements to your home. These improvements could be to upgrade your insulation or install low-carbon heating, for example. The voucher must be redeemed, and home improvements made by 31 March 2022.
Who is eligible?
Homeowners or residential landlords.
Grants to help pay off your energy debt
What is it?
A grant from a charitable trust to help you pay off debts to your energy supplier.
British Gas Energy Trust offers grants which are open to anyone (you don’t have to be a customer).
Scottish Power Hardship Fund, Ovo Debt and Energy Assistance, E.on Energy Fund, EDF Energy Customer Support Fund, Npower Energy Fund and Bulb Energy Fund all offer grants specifically for their customers.
Who is eligible?
Anyone who is struggling to pay off their energy debts. Those who apply will need to provide detailed financial information in the application. Charitable trusts also like to see evidence that you’ve received debt advice before you apply. This can increase your chances of making a successful application.
Further information on how to claim the grants or benefits listed can be found on GOV.UK
Zephyr Homeloans Reduces Rates on Its Five-Year, Fixed-Rate, Standard Buy-to-Let Loans for a Limited Time
Zephyr Homeloans, the specialist buy-to-let (BTL) lender owned by Computershare, has reduced rates on its five-year, fixed-rate, standard buy-to-let loans for a limited time.
Zephyr’s new rates start at 3.19% for up to £1.5 million for the five-year, fixed-rate standard buy-to-let mortgages for individuals and limited companies.
As with all of Zephyr’s products, there is no upfront application fee. The products carry a 2% arrangement fee.
Paul Fryers, Managing Director at Zephyr Homeloans, said: “We are delighted to offer a reduced and highly competitive ‘Spring Special’ on our five-year, fixed rate product, which coincides with the peak property buying season.
“The new rates are one of the lowest in the specialist buy-to-let market today, offering landlords and property investors further product options when considering either plans to purchase a new property or re-finance existing mortgages.”
Zephyr will lend up to £1.5 million on its standard range at 70% loan-to-value (LTV) and up to £1 million with a 75% LTV.
Last month, Zephyr announced its new 1% product fee option for standard and specialist properties and enhanced its range by increasing its minimum loan-to-value limit to 65% across its entire product range while retaining the £1.5 million maximum loan amount.
Zephyr also continues to offer its 70% and 75% LTV bands.
