Stamp duty threshold "a drop in the ocean"

Date:Thursday 25th March 2010
Author: Susanna Kavka

Rachael Stiles, mortgage spokesperson for the organisation, explained that the government must address the reluctance of most banks to offer competitive rates, calling the Budget proposal "a drop in the ocean".

She said: "Lenders are still cherry picking the best customers and even appear to be actively discouraging borrowers with small deposits from getting a mortgage."

Ms Stiles then referred to a recent statement by Moneyfacts, which revealed that a ten per cent deposit proves to be £5,000 more expensive than a 25 per cent down payment over a two-year period.

Independent mortgage experts John Charcol went further than Fair Investment Company and complained that the system is in need of total reform, declaring the tax on property should be changed in order to operate in the same way income tax is charged.