MoneySuperMarket: Buyers will rush to complete before SDLT deadline
Buyers will need to rush in order to complete before the stamp duty holiday deadline of 30 June, according to MoneySuperMarket.
The 70-day time period is just under the 77 days that the average property purchase is taking to complete, while the average purchase for a first-time buyer takes 99 days, homemovers take 88 and remortgaging takes 71.
The scheme was originally scheduled to come to an end in March but was extended to 30 June in the Chancellor’s March Budget.
Following the extension of the holiday, MoneySuperMarket noted a 421% increase in mortgage enquiries, with 90% LTV deals representing 39% of this figure.
Nearly two thirds (63%) of home hunters are in the market as a result of the scheme.
25-34 year olds are the most likely to take advantage, with 71% having bought a home or claiming that they intend to do so as a result of its introduction.
The research by MoneySuperMarket also revealed an increase in the number of 95% LTV mortgages on the market; a total of 70 deals are currently available, up from 12 at the start of the year, a 483% rise, though still down substantially by 67% on the 214 deals available in January 2020.
MoneySuperMarket has seen a 71% uplift in enquiries for first-time buyer 95% mortgages in the seven days between 12 April and 19 April when the announcement was made.
Fixed-rate mortgages continue to receive the most interest from visitors to, with 2-year fixed rate deals more popular than 5-year fixed rate deals with first-time buyers, those looking to remortgage, home movers and buy-to-let purchasers.
Jo Thornhill, finance expert at MoneySuperMarket, said: “The stamp duty holiday extension has been hugely popular but those seeking to take advantage of it better hurry with the deadline now only ten weeks away.
“With the average home purchase taking 77 days to complete, many will be cutting it fine.
“However, if you’re chain-free and have only just started looking, you should still have enough time if you act now.
“Our research shows that the situation for first time buyers is slowly improving: there are significantly more 95% LTV deals on the market than in January and, following the start of the government’s new 95% mortgage guarantee scheme on Monday, the availability of mortgages for buyers with a 5% deposit looks set to increase.
“While we welcome the government’s moves, there remains a long way to go if we’re going to see a reduction in the challenges that exist for first time buyers.
“We’d like the government to think about long term solutions for making home ownership a reality for more Brits, particularly those who think it is out of their reach.
“As the current economic environment remains uncertain, it comes as no surprise that the most popular mortgages are fixed, with homeowners opting for 2-year deals in greater numbers than 5-year deals – something which suggests people are more content to hedge their bets in the short term.”