New government may reverse stamp duty break for first time buyers

In the budget by the former Chancellor of the Exchequer, Alistair Darling, earlier this year it was announced that there was to be a stamp duty break for first time buyers in the UK, and that first time buyers would be able to buy a property up to the value of £250,000 without having to pay any stamp duty.

The former Labour government was hoping to help more first time buyers onto the property ladder and to revive the housing market through this move. The increased stamp duty exemption threshold was twice the standard levels, which is £125,000, and was made available for first time buyers only.

However, it has emerged that the new coalition government is considering scrapping the extension on stamp duty exemption, which means that first time buyers could have this important tax break pulled out from under them just months after it was originally introduced.

The extension on stamp duty exemption was set to last for two years until 2012, but as part a range of cutbacks the new coalition government could end up getting rid of the stamp duty break. The Conservative party had previously supported increasing the stamp duty exemption threshold for first time buyers, and the Labour party was said to have pinched the idea from the Tories.

In fact, many thought that the Conservative party would make the increased exemption permanent if elected, but instead the government is considering scrapping the tax break altogether in a bid to save more money to clear the public deficit.

The recent budget stated: ‘As announced in the Coalition Agreement, the Government will review the stamp duty land tax relief for first time buyers taking into account its impact on affordability and value for money.’

Tags: Stamp duty in the United Kingdom, Herald Sun, coalition agreement, chancellor, stamp duty, first time buyer, move, tax

Lenders push borrowers into costly fixed rate deals

It has been claimed that some lenders have been trying to push their borrowers into costly fixed rate deals at a time when the base rate has been at an all time low of just 0.5 percent for the last eight months. Read more

Tags: fixed rate mortgages, financial, would make sense, base rate, move, Mortgages, low base rate

Smaller packets offer better value in shops

According to a recent report shops in the UK are aiming to offer customers with better value for money by offering smaller packaged items for a lower price rather than forcing customers to purchase unnecessarily large items for a more expensive price. Read more

Tags: cheaper shopping, discount stores, IPhone, money, Retailing

Banks take taxpayer’s money but won’t lend any back out!

Over the past year the UK government has spent billions of pounds bailing out the banking industry following the global credit crunch and the ongoing financial crisis. Banks have run into severe difficulties in terms of their finances, and at one point the banking industry in the UK was said to be on the verge of collapse. Read more

Tags: bail out, move, mortgage applications, high interest rate, Mortgages

Norwich Union pulls out from comparison sites

Insurance giant Norwich Union has recently announced that it is pulling out of placing deals on price comparison sites. Many insurance providers allow their deals and packages to be viewed on one of a range of price comparison sites that have come into play over the past couple of years. A large number of consumers use these sites to see at a glance whether they can cut the cost of cover or to find the most competitive insurance deals. Read more

Tags: norwich union, use, Website, leading insurance, insurance giant, move

Consumers ‘no longer king’ in mortgage market

The mortgage market has completely changed over the last year and it is now likely that consumers wishing to take out mortgages will be hit with arrangement fees, an expert has commented. Read more

Tags: king, move, loan, Mortgages, mortgage market, editor, Super jumbo mortgage, economy

Take steps to minimise flood damage, insurer urges

Flooding is becoming a greater and greater risk in many parts of the country.

This summer, parts of Yorkshire, Lincolnshire and Gloucestershire were swamped by flood waters for days, causing millions of pounds worth of damage and even claiming lives.

The cost to the insurance industry was around £3 billion, and while many insurers have voiced their reluctance to continue to insure some properties while government spending on flood defences is at its current levels, industry body the Association of British Insurers (ABI) is reviewing the principles of practice in the area.

In the meantime, Cornhill Direct has suggested a number of measures homeowners can take to minimise the damage flooding causes if and when it strikes again.

Homeowners should prepare a “flood pack”, including a torch, first aid kit, blankets, warm clothes and fresh water, and move property from lower floors upstairs where possible.

Cornhill also recommends keeping your insurance documents and radio dry, so that you can listen to public announcements.

Spokesperson Mark Bishop said: “The continued widespread availability of flood insurance depends on sustained government investment to bring flood defences up to an adequate standard.

“Householders should follow our advice which will help to minimise the damage of a flood and help those affected to recover as soon as possible.”

Tags: Lincolnshire, standard, Householders, current levels, move, insurance industry

Barclays offer reduced personal loan rates

Barclays bank has announced it will cut its personal loan rates when many lenders are having trouble maintaining current rates, according to Gary Druggan, managing director at Barclays Personal Loans.

Cutting rates on its entire book, the lending giant steps up competition in a move that takes advantage of its “strong balance sheet”.

The bank reports that Barclayloan Plus loan rates are going down by 0.6 per cent to 6.8 per cent APR typical.

Mr Duggan said: “At Barclays we are able to take advantage of a very strong balance sheet and finance loans from our very strong deposit taking business, enabling us to cut rates for this campaign.”

Personal loan rates have been just one of many things to be affected by recent credit crunch.

With many lenders forced to push rates up by as much as four per cent, borrowers would have trouble finding a rate below 6.9 per cent.

Mr Druggan added that anyone finding better loan rates than offered with Barclays will be refunded the difference and will also receive a bonus of one pound every month.

Tags: pound, move, apr, crunch, difference