Discussion
Relieved that the corporation tax changes are much more sensible than feared.
With regards to these guaranteed 95% mortgages. I will be interested to see what sort of rates they are when launched and how strict the credit scoring is. I suspect the impact might be more underwhelming than expected as very few will pass the credit check or like the rates on offer.
With regards to these guaranteed 95% mortgages. I will be interested to see what sort of rates they are when launched and how strict the credit scoring is. I suspect the impact might be more underwhelming than expected as very few will pass the credit check or like the rates on offer.
Edited by Mortgage_tom on Wednesday 3rd March 14:12
Mortgage_tom said:
Relieved that the corporation tax changes are much more sensible than feared.
With regards to these guaranteed 95% mortgages. I will be interested to see what sort of rates they are when launched and how strict the credit scoring is. I suspect the impact might be more underwhelming than expected as very few will pass the credit check or like the rates on offer.
Yep, rates are likely to be over 4%, given that most 90% rates are +/- 3.5%.........With regards to these guaranteed 95% mortgages. I will be interested to see what sort of rates they are when launched and how strict the credit scoring is. I suspect the impact might be more underwhelming than expected as very few will pass the credit check or like the rates on offer.
Edited by Mortgage_tom on Wednesday 3rd March 14:12
I don't see and advantage / disadvantage to anyone re. pension contributions. No tax is paid on the way in and it is taxable on the way out. It would be so incredibly complex to do anything else and at the end of the day everyone in the country on a DB scheme has a much more advantageous pension anyway, most of which work for HMG in some form or other.
Leave well alone I say.
Leave well alone I say.
Mortgage_tom said:
Relieved that the corporation tax changes are much more sensible than feared.
With regards to these guaranteed 95% mortgages. I will be interested to see what sort of rates they are when launched and how strict the credit scoring is. I suspect the impact might be more underwhelming than expected as very few will pass the credit check or like the rates on offer.
I was looking at HSBC mortgages the other day just to get an idea on this.With regards to these guaranteed 95% mortgages. I will be interested to see what sort of rates they are when launched and how strict the credit scoring is. I suspect the impact might be more underwhelming than expected as very few will pass the credit check or like the rates on offer.
Edited by Mortgage_tom on Wednesday 3rd March 14:12
They stop at 90pc LTV, and they won’t lend over £400,000.
So right away the gov offering 95% on a £600k limit won’t be likely as you’ll hit the lenders lending limit before the LTV limit.
Unless gov are planning to subsidise lending £570,000 mortgages, waaayy beyond the £400,000 HSBC are willing to lend!
Also the interest rates were quite steep over 85% LTV, so 95% won’t be nice.
And then it makes you wonder, whoever can afford such high borrowing, at high interest rates, likely won’t be struggling for income any way, so the extra 5% LTV help may be a bit irrelevant.
For lower priced homes the difference is probably not a massive change, and the higher interest will probably put many off (back in 2004 my wife and I scrounged and saved to 90% rather than any product over that due to costs)
Much like the stamp duty “help“ which has just lifted the price floor, these latest offerings appear to do nothing for anyone except very wealthy who don’t really need the help, or banks.
Bailouts for the wealthy, dressed up as help for the poor.
Stamp duty relief extended to end of June to help those who would have been disadvantaged by missing the March deadline.
When it comes to June, there will be people who are financially disadvantaged because they miss the June deadline and they will be hoo-ing and haa-ing on social media again.
First time buyers find that all prices have gone up by the stamp duty value and the sellers have made off with more money.
When it comes to June, there will be people who are financially disadvantaged because they miss the June deadline and they will be hoo-ing and haa-ing on social media again.
First time buyers find that all prices have gone up by the stamp duty value and the sellers have made off with more money.
Yep the tax break on stamp duty was a bit pointless the government got nothing out that and all its done was drive prices up way higher than any potential saving you would have made by not paying the stamp duty. Government should have said its 50% off that way everyone would have thought thats good and those that were moving would still move anyway. Surely nobody moved just because the duty was removed as in the brand scheme of this most purchased the duty is £5000 or under. Not a large sum to make moving an incentive.
I have a complete a55hole of a neighbour but i have not moved as it was quite clear the tax i was saving was about £8000 but prices went up nearer £30k. The sellers go with a lot more money and the gvmt got nothing. To extended it further was a waste of time.
I have a complete a55hole of a neighbour but i have not moved as it was quite clear the tax i was saving was about £8000 but prices went up nearer £30k. The sellers go with a lot more money and the gvmt got nothing. To extended it further was a waste of time.
vulture1 said:
Government want people to move houses. New house means movers get paid, sofa shop gets a visit. Oh that bathroom needs redone, New cusions to match the new room etc.
In addition to wanting prices to keep rising so people have the illusion of wealth to carry on with debt fuelled spending / voting the incumbent government in.I know which one they prioritise.
thekingisdead said:
vulture1 said:
Government want people to move houses. New house means movers get paid, sofa shop gets a visit. Oh that bathroom needs redone, New cusions to match the new room etc.
In addition to wanting prices to keep rising so people have the illusion of wealth to carry on with debt fuelled spending / voting the incumbent government in.I know which one they prioritise.
So gov gave up stamp duty. Sellers instead put stamp duty on price which means mortgages are bigger = debts bigger = banks more money with interest rates near zero.
The 95% support is just the icing on the cake.
It’s so obvious what they’re trying to do, but I can’t help but wonder how there isn’t outrage.
Stamp Duty could have probably given everyone in the NHS/front line a pay rise this year... but no. Enriching your mates is the priority.
valiant said:
Thought they’d mess about with pension tax relief so I’m glad they’ve left that alone. One of the few benefits of being a higher rate tax payer.
It’ll come eventually but at least not for another year.
Lifetime allowance is frozen from now for 5 years though, no yearly rise with inflation. It’ll come eventually but at least not for another year.
No stamp is probably going to benefit a rare percentage.
Who needs to move? Who will move have more mortgage and face uncertain times over the next five years so won't get the pleasantries they usually had.
I have thought could we capitalise on this stamp break, find something new but it will cost 5-7k to move so can't honestly see why (other than neighbours we don't like).
Who needs to move? Who will move have more mortgage and face uncertain times over the next five years so won't get the pleasantries they usually had.
I have thought could we capitalise on this stamp break, find something new but it will cost 5-7k to move so can't honestly see why (other than neighbours we don't like).
tighnamara said:
valiant said:
Thought they’d mess about with pension tax relief so I’m glad they’ve left that alone. One of the few benefits of being a higher rate tax payer.
It’ll come eventually but at least not for another year.
Lifetime allowance is frozen from now for 5 years though, no yearly rise with inflation. It’ll come eventually but at least not for another year.
- LTA remain the same for 21/22
- IHT threshold remain the same for 5 years until Apr-26
chip* said:
tighnamara said:
valiant said:
Thought they’d mess about with pension tax relief so I’m glad they’ve left that alone. One of the few benefits of being a higher rate tax payer.
It’ll come eventually but at least not for another year.
Lifetime allowance is frozen from now for 5 years though, no yearly rise with inflation. It’ll come eventually but at least not for another year.
- LTA remain the same for 21/22
- IHT threshold remain the same for 5 years until Apr-26
“However, the Chancellor announced on Wednesday that until April 2026, Inheritance Tax thresholds, the pension lifetime allowance and the annual exempt amount in Capital Gains Tax will be maintained at their current levels”
These fixed allowances will scoop up a lot of extra revenue.
In 5 years the average house price could be the IHT tax free allowance at this rate.
Inflation generally could run hot a little while and add say 2pc per annum to values going over these allowance limits.
It’s good move if you expect a little flurry of inflation.
In 5 years the average house price could be the IHT tax free allowance at this rate.
Inflation generally could run hot a little while and add say 2pc per annum to values going over these allowance limits.
It’s good move if you expect a little flurry of inflation.
tighnamara said:
chip* said:
tighnamara said:
valiant said:
Thought they’d mess about with pension tax relief so I’m glad they’ve left that alone. One of the few benefits of being a higher rate tax payer.
It’ll come eventually but at least not for another year.
Lifetime allowance is frozen from now for 5 years though, no yearly rise with inflation. It’ll come eventually but at least not for another year.
- LTA remain the same for 21/22
- IHT threshold remain the same for 5 years until Apr-26
“However, the Chancellor announced on Wednesday that until April 2026, Inheritance Tax thresholds, the pension lifetime allowance and the annual exempt amount in Capital Gains Tax will be maintained at their current levels”
I was selfishly hoping the LTA freeze would only be 1 year, but not to be
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