Prospective buy-to-let landlords are being warned not to delay their property purchases if they want to take advantage of the stamp duty holiday.
Skipton International, an offshore bank which specialises in expat mortgages, said anyone considering buying a home to let using a mortgage should act quickly in order for the process to be completed on time.
The stamp duty holiday, which provides relief on the tax for properties up to the value of £500,000, means purchasers could generate as much as a £15,000 saving on a property bought for £500,000.
Although it runs until 31 March 2021, which may seem like a long way off at the moment, Skipton is warning potential borrowers to get the ball rolling soon because lenders are being flooded with applications.
Indeed, they may be competing with applications from overseas investors who are keen to get their application completed before the 2% foreign resident stamp duty surcharge is introduced on 1 April, 2021.
Jim Coupe, managing director of Skipton International said: “Our mortgage team has been inundated with applications for UK buy-to-let purchases over the last few months.
“The low interest rates combined with the Stamp Duty holiday in England has seen a sharp increase in those looking to invest in good quality property for letting purposes.
“Skipton International offers a range of competitive buy-to-let mortgages to British expatriates and foreign nationals, and we’d be pleased to assist – but soon.
“The localised UK Covid lockdowns have resulted in a few delays with surveyors and valuers being able to visit properties, so we really do advise those contemplating a purchase to get in touch.”
