Stamp Duty Changes
CML – The Council of Mortgage Lenders were delighted with the Chancellors recent Statement regarding the transformation of stamp duty land tax from the current block method to a fairer, graduated system. The CML claims that it has wanted this reform for a long time.
Paul Smee, Director General of the CML said:
“This change has been due for some time. Its not beneficial for everyone, however, the majority of house purchases will gain from a lower overall amount of stamp duty.”
CML information states that only 1.5% of all mortgaged based purchases last year would not have benefited from the new system.
The Autumn report also identifies work that’s being carried out between CML and Which? The CML claims that it’s delighted to be working alongside Which? They are working to a range of procedures that both expect to help openness, comprehending and decision-making for buyers when they’re taking into consideration the total cost of various mortgages. Further insisting that although the Financial Conduct Authority’s policies on the information of cost are extensive, buyers don’t always find the disclosure straightforward. Therefore, this initiative looks to identify sensible steps, beyond regulation, that can assist.
Which? and CML have decided to collaborate and think about useful steps regarding the issues below:
Openness and presentation of charges and fees in order to enhance buyer outcomes;
Industry standard terminology regarding charges and fees;
customers knowledge; and
establishing administrative fees in order that they reveal the cost for the lender.
The Treasury has taken interest in the project. Which? and CML have agreed to supply a report by the 2015 Budget. The entire project is predicted to be complete in six months, and will create a future plan for action, which will be driven through industry guidance.