Homeowners and buyers could be facing some turbulent waters in the next three weeks as April’s economic changes start days after the spring statement, which is expected to be eventful in itself.
Between the two dates, experts at Mojo Mortgages believe there’s two changes homeowners and hopefuls should be on the lookout for: stamp duty and ISAs.
Stamp Duty
In October the Chancellor announced changes to stamp duty due to begin on April 1st, which will lower the thresholds for first-time buyer relief and home-movers.
This could potentially add thousands to the cost of moving or buying a home.
Mortgage advisor Adil Choudry warned: “The Stamp Duty changes are a real worry. For some, it could be the difference between being able to afford a home or not.”
The expert hopes Rachel Reeves will acknowledge the effect these changes will have on those trying to buy their first home, who are already caught between skyrocketing house prices and cost of living crisis.
LISAs, tax-free savings vehicles, are rumoured to be on the chopping block at the spring statement as the experts warned these “saving lifelines” could be “under threat”.
Adil explained: “Lifetime ISAs are a fantastic way for first-time buyers to boost their savings. But if the property price cap isn’t raised, it becomes useless for those trying to buy in more expensive regions. We’re hoping the Chancellor will recognise this and make the necessary adjustments to keep the dream of homeownership alive.”
For current homeowners, Adil noted there’s a bit more at play when looking at their options: “Borrowers often ask us whether now’s a good time to fix, or whether they should hold out to see if rates reduce.
“However, the average standard variable rate of 7.99% is far higher than most fixed-rate deals out there, so homeowners could still be better off locking in a new mortgage deal.
“Borrowers are caught between hoping for further rate cuts and the risk of inflation staying higher for longer.”
No one’s expecting Rachel Reeves to completely upend the mortgage market at the end of the month, the experts assured.
But there may be some subtle changes in store that could have a ripple effect on your homeownership, which also means avoiding it takes some equally subtle steps.
The experts recommended staying informed as the spring statement and April changes roll into effect, understanding the implications it has will be vital so it may be necessary to enlist some professional help from the likes of a mortgage broker.
Shopping around and comparing deals as the market fluctuates over the coming weeks can also give you peace of mind that you are in the best deal possible or help you start making the move into that position.
