The stamp duty holiday will end soon, on March 31. The recent scheme saw stamp duty fees removed on properties worth up to £500,000 and has assisted housing market activity amidst the COVID-19 crisis. However, surveyors, brokers and lenders are still trying to meet the built-up demand from spring, resulting in many homebuyers now discovering they can’t complete their mortgages in time to benefit from the stamp duty holiday.
Buyers requiring a swift conclusion for their mortgage are advised to check with their broker or lender if it’s possible to process applications quickly enough to take advantage of stamp duty savings before the imminent deadline. If any risk exists that the deadline can’t be met, a bridging loan may be a wise move.
The average time taken to complete a bridging loan is approximately 13 days, according to recent statistics, making it an ideal way to complete quicker. The buyer can then continue with their mortgage to pay off the bridging loan they took out.
Bridging loans are short-term loans payable in months, instead of years, and typically have a 70 percent maximum for loan-to-value. These loans can be obtained via a dedicated loans broker. Borrowers are advised to compare interest costs and fees against any savings on stamp duty to make an informed decision.
If you’re seeking expert advice on acquiring a bridging loan to make the most of the stamp duty holiday, contact our specialist team at Ingard today.