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Archive for Stamp duty

First time buyers not to be offered any help

Wednesday, March 5th, 2008

The chancellor has come under fire and been accused of missing an opportunity by not offering to help first time buyers struggling to get onto the property ladder. The reason for the criticism is that the chancellor decided not to the raise the level of stamp duty from its current level of £125,000.

In his pre-budget report the small print does refer to the possibility of reforms that might allow certain people buying their house through official shared equity schemes to escape paying the tax. Typically this would be public sector workers who increasingly find that their salaries are no match to what they could receive had they worked in the private sector.

A report released by the Council of Mortgage Lenders was released just hours before the Chancellor’s pre-budget report and it warned that first time buyers were finding issues of affordability increasingly difficult to deal with. With house prices having outpaced wages over the last decade and interest rates on loans and mortgages rising, first-time buyers are hard pushed to reach that bottom rung.

Many experts were surprised by the fact that the pre-budget report lacked a reference to stamp duty despite the fact that the Conservatives had pledged to remove it for first time buyers that are worth £250,000 or less.

Halifax has found that the average UK first time buyer now pays roughly £169,000 for their first home. On a property of that value they have to dish out an average of £1,688 in stamp duty, on top of the deposit, moving costs and first home loan repayment.

Some experts have argued that the removal of stamp tax for first time buyers was an ideal way of helping the thousands of people out there looking to get onto the first rung of the property ladder.

Posted in Borrowing, Consumer Credit, Financial news, First time buyers, Homeowner Loans, Homeowners, House buying, interest rates, mortgages, Personal loans, Property, Secured loans, Stamp duty, UK Finance | No Comments »

The Cost of Moving Home

Thursday, June 28th, 2007

A new study shows that the average cost of moving home throughout a person’s lifetime averages around £23,800.  The study reveals that homebuyers often underestimate hidden costs such as solicitors’ fees, stamp duty, removal costs and estate agent fees.

Experts advise homebuyers that as the price of houses continue to increase that it is important for people to look at the bigger picture in terms of costs and budget for these additional fees that most home buyers rarely consider when purchasing a home.

The majority of homebuyers in Britain are not prepared for these hidden costs and do not have a contingency fund in place to cover these unexpected fees.  It is estimated that only half of Britons have a contingency fund in place when they purchase a home to cover the hidden costs involved with the purchase.  Buyers are frequently relying on personal loans to when it comes to down payments and other moving expenses.

Fifteen percent of home movers resort to additional loans and credit cards to cover the costs of moving and five percent rely on relatives for extra help.  Around fifty-seven percent of homebuyers are not prepared to make the sacrifices needed to afford the property they want.  However for those who do make the sacrifices it is found that one person in four skips holidays abroad and one in five give up eating out and buying new clothes.  There are those who make larges sacrifices such as a change in career or they put off starting a family in able to afford the home of their dreams.

With the price of homes increasing it is important for buyers and sellers to do their research beforehand and make themselves aware of these fees and to be more informed about the option available to them to help with their finances.

Posted in Borrowing, Consumer Credit, Credit Card, Financial news, First time buyers, Homeowner Loans, Homeowners, House buying, Housing news, mortgages, Personal loans, Property, Secured loans, Spending, Stamp duty, UK Finance | No Comments »

Ways to Appeal to Potential Creditors

Monday, February 5th, 2007

When you are applying for a loan, lenders rely on a credit report when deciding whether to loan you money.  Your credit report  will decide just how much the lenders will be willing to lend you as well as determining the interest rate that they will charge you.  Having a good track record will show just how well you have been repaying other debts and whether or not you will qualify for a loan.  If you have no credit history you may not qualify for a loan, and you may find it difficult getting one.

If you have no track record, the best way to start one is by opening a small credit card and paying your monthly charges on time or even paying more than the minimum required.  Once you have established a good record with your first card, you can then try for a small personal loan.

Some loans that appeal to creditors when searching your past credit history, are mortgages, debt consolidation loans, bank loans, or credit cards. Mortgages are especially appealing to potential creditors as there will be a long history of payments.  Debt consolidation loans can be a good sign to some creditors, it’s a sign that you are serious about getting yourself out of debt.  Debt consolidation loans can only be appealing if it was a one-time event.  Bank loans are positive as long and you repay them regularly and on time.  For creditors, credit cards can be a positive thing so long as you are making regular payments and the balance on the cared is not more than eighty-percent of the available limit.

Posted in Borrowing, Consumer Credit, Consumer debt, Credit Card, Credit record, Personal loans, Stamp duty, UK Finance, Unsecured loans | No Comments »

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