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Money Saving Expert Martin Lewis issues mortgage warning

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Money Saving Expert Martin Lewis issues mortgage warning

Money-saving expert Martin Lewis has warned home buyers and homeowners about mortgages.

The personal finance guru explains in his latest newsletter from Money Saving Expert that stamp duty changes could have an impact.

In combination with stricter criteria due to the coronavirus pandemic, this means that mortgages with a high lending value – for example small deposits or little equity – are no longer available.

And Lewis, popular with fans of ITV’s This Morning and Good Morning Britain, has suggested that 15 percent of mortgages could be the lowest lenders.

Stamp duty is a tax paid by people who buy real estate. However, it varies slightly in the UK.

In England and Northern Ireland, buyers pay stamp duty.

Government plans have temporarily raised the stamp duty threshold on property sales in England and Northern Ireland to £ 500,000 through March 31, 2021.

Those who buy a primary residence by then at a cost of up to £ 500,000 will not pay stamp duty and more expensive properties will only be taxed at their value above that amount.

This saves buyers up to £ 15,000 when buying a property of £ 500,000 or more, reports the Liverpool echo.

With the advent of tax vacation, the demand for real estate has skyrocketed, meaning that mortgage lenders have struggled to deal with it.

Martin Lewis said there were 386 mortgages with a five percent deposit at the start of the pandemic.

Now there is only one standard five percent mortgage, while strict conditions apply to all other mortgages, e.g. B. for parents as guarantors.

It was 751 at ten percent, but now it’s only 57.

For many people, 15 percent is the new floor minimum on deposits, and even beyond that, interest rates are rising, as the cheapest two-year fix was 1.09 percent in July – on a 40 percent deposit – but now it’s 1.24 percent cents .

The money whiz sadly said there are no perfect solutions and for those who can, suggests that they wait and save instead.

You can read Martin’s full tips and advice on his subject weekly Money Saving Expert email.

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