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Liquidity crisis must not be allowed to sink first-timers

The health of the housing market is at risk as first-timers are finding it tough in the wake of the liquidity crisis and banks and building societies have stopped offering high LTV mortgages.

This has hit first-timers particularly hard as many need to borrow more than the value of their homes to cover moving costs and Stamp Duty.

Pundits predict a fall in housing market activity this year as tightened access to credit hits first-timers, but reduced their involvement with the market is in nobody’s interest. Abolishing Stamp Duty for them would shore up the industry.

Chancellor Alistair Darling cannot ignore the effect the liquidity crisis has had on first-timers’ ability to borrow.

He must act now to resuscitate the housing market. If first-timers were given a break from Stamp Duty, the costs involved in purchasing homes would fall dramatically. He must give them relief and raise the tax’s threshold to £250,000.

David Newnes
Managing director
Your Move
By email


KGB unveils self-cert deals

KGB Packaging is offering self-cert clients the chance to borrow up to 90% LTV with two exclusives from Kensington. The deals comprise a three-year fixed rate at 6.89% and a two-year fixed rate at 6.99%. Both feature a £1,999 completion fee.

Easier2move appoints first chairman

Easier2move has appointed Tracy Morshead as its first chairman.It follows his apppointment as chairman of Mortgage Brain.He joins E2M from Principality where he was managing director, before which he spent 10 years at Nationwide in a number of senior positions including divisional director of mortgages and insurance and divisional director of marketing.His new responsibilities will […]

Up, Up and Away For Mortgage Rates ?

I see Halifax, amongst others, is increasing its tracker rates again today which in isolation is not so much of an issue. Taken in the context of the last few weeks, I have never known such a situation.Lenders are repricing upwards, with not much if any notice, on a frighteningly regular basis which is making […]

Market watch 10 March 2008

Swaps dropped significantly last week but as we’ve seen recently, the fate of swap rates doesn’t affect current pricing.

The future of active management is now

Fees under pressure. Regulatory moves against closet indexers. Rapid advances in financial technology. Shifting sentiment among investors. Such mounting challenges have led to widespread speculation about active management’s shrinking future. But a closer look inside intelligent portfolio construction today tells a story of expanding roles, added value, and innovative risk-adjusted, lower-cost solutions. Four investment experts […]


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