Martin Lewis, the founder of Money Saving Expert, has warned UK homeowners about big changes to mortgages.
The finance pro explained in the weekly Money Saving Expert newsletter how recent Stamp Duty adjustments had an effect on mortgages.
Martin has claimed that such changes combined with tighter criteria for mortgages during the pandemic, means that high-loan-to-value mortgages have all but disappeared.
Stamp duty is a tax paid by people buying homes, but it varies across the country.
In England and Northern Ireland, buyers pay the Stamp Duty Land Tax.
During the pandemic, the Government temporarily increased the stamp duty threshold.
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The amount now stands at £500,000 until March 31 2021, reports the Echo.
This means that anyone buying or selling a main residence worth up to half a million pounds will not pay stamp duty.
Houses costing over £500,000 will be taxed on any amount above the threshold.
This could save buyers as much as £15,000.
However, Martin warns, with the tax holiday in place more brits are looking to buy property.
And, mortgage lenders are finding it difficult to cope.
In the newsletter, the Money Saving Expert said that at the beginning of the crisis there were 386 mortgages available with a 5% deposit.
Now, there is just one standard 5% mortgage and others have strict conditions such as needing a parent as a guarantor.
Equally, before the pandemic there were 751 mortgages at 10% whereas there are now just 57.
This means that 15% is the new base for deposits for many people – and rates are going up.
The cheapest before the lockdown was 1.09% whereas now it’s 1.24%.
Martin said he would recommend waiting to buy and saving up a greater deposit instead.