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It was hastily arranged within 50 days by the new coalition government and dubbed the emergency Budget. Chancellor George Osborne set the scene for his speech with the opening line: “Yes it’s tough, but it’s also fair.” We spoke to leading commentators about the likely impact of the Budget on the industry.
So Mortgage Strategy asks…What does the emergency Budget mean for the mortgage industry?
BRIAN MORRIS
HEAD OF SAVINGS POLICY
BUILDING SOCIETIES ASSOCIATION
Changes to the Support for Mortgage Interest scheme will mean less help for borrowers on an interest rate above the Bank of England’s average mortgage rate.
CHARLES MORLEY
HEAD OF SALES AND PRODUCT DEVELOPMENT
KENSINGTON
Our research suggests that the Capital Gains Tax route chosen by the chancellor is the one most favoured by brokers. We are confident it will have minimal impact on the buy-to-let market.
MICHAEL COOGAN
DIRECTOR-GENERAL
COUNCIL OF MORTGAGE LENDERS
Pain is likely in the short term as tax rises dampen the fragile recovery in buyer confidence, house building is affected and support for housing costs is reduced.
RAY BOULGER
SENIOR TECHNICAL MANAGER
JOHN CHARCOL
The biggest impact on the mortgage market is the CGT change but at 28% it’s not going to affect it too much. The differing levels will help those in the sector for the long term.
PETER WILLIAMS
EXECUTIVE DIRECTOR
INTERMEDIARY MORTGAGE LENDERS ASSOCIATION
The CGT change will have some effect but less than expected. It’s clearly not something we wanted but this rise is nowhere near as bad as we feared.
ROBERT SINCLAIR
DIRECTOR-GENERAL
ASSOCIATION OF MORTGAGE INTERMEDIARIES
Having taken significant steps to address the deficit the Budget protects the country’s international credit rating and should reduce inflation, thus helping to keep the base rate low.
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