View more on these topics

Nationwide calls to raise Stamp Duty threshold

Nationwide has called on Gordon Brown to increase the Stamp Duty threshold, at which the initial 1% tier of Stamp Duty tax paid on residential house purchases kicks in, in line with house price inflation.

This would take the threshold up to £202,000 from its current level of £125,000, based on the original threshold of £60,000 increasing in line with house prices since 1993.

With figures from the Council of Mortgage Lenders showing that 56% of first-time buyers now pay stamp duty, compared to just 48% a year ago, this move would free up thousands of homebuyers each year from the burden of the tax.

Stuart Bernau told the Chancellor: “As property prices continue to rise, an increasing number of people are buying houses and being caught by stamp duty.

“Whilst we welcome the Government’s move to raise the stamp duty threshold in the last Budget, Nationwide believes that stamp duty limits should be linked to house price inflation to ensure the burden of stamp duty keeps pace with rising house prices.

“If this were the case, the 1% rate should now start at £202,000.”

Mortgage Strategy is also campaigning to raise the stamp duty threshold for its Step Up Stamp Duty Campaign.

Nationwide also asked Gordon Brown to increase the limit on annual ISA savings from the current level of £7,000 to £9,000 – the same amount that could be saved in its predecessor, the TESSA, which was replaced by the ISA in 199

Recommended

Property bond from Newcastle

Newcastle has launched a five-year term Guaranteed Property Bond with returns linked to any growth in the Halifax house price index. The bond’s return is based on 110% of any growth in the Halifax index and has a full capital guarantee, which means that provided it is maintained for its full term, the capital invested […]

Money Partners completes fourth securitisation

Money Partners has completed its fourth securitisation transaction in the UK residential mortgage backed securities market. Totalling £600m, the transaction, called Money Partners Securities 4 Plc (MPS4), was issued by Kensington Group with The Royal Bank of Scotland and West LB acting as lead managers.For the first time, MPS4 comprises assets originated by both Money […]

Kensington joins m2i panel

M2i has added Kensington Insurance to its distribution panel, allowing its members access to its protection products. The deals now available to m2i members include cover for self-employed workers if they have no income for two months due to lack of orders.

Paragon profits hit 82.8m

Paragon Group has revealed profits of 82.8m, with lending up by a whopping 82% in the 12 months to September 30 2006.Paragon originates loans primarily via its two brands – Paragon Mortgages and Mortgage Trust. New loans rose from 1.7bn in 2005 and for the first time exceeded 3bn. Total buy-to-let mortgage balances outstanding grew […]

Newsletter

News and expert analysis straight to your inbox

Sign up