Brokers offer up Budget 2013 wishlist
Springtide has three main wishes – an extension of funding for lending for households and small businesses, more Stamp Duty holidays and increased mortgage lending to households.
Henry Knight, managing director of Springtide Capital, said: “Our hope for next week’s Budget is that Funding for Lending will be increased up to at least 2015.”
Its widely expected that Chancellor George Osborne will announce greater lending to small businesses, providing a cash injection for start ups.
But Knight added: “It’s our sincere hope that this will not have a detrimental impact upon mortgage lending, which has increased significantly since the introduction of the scheme in 2012.
“It is equally important for increased funds to be released to both households and small businesses in order to give the economy the boost that it needs to realise real growth.
“We hope the Chancellor will consider that these two areas are ultimately inextricably linked and that growth in one inevitably will impact on growth in the other.”
Ian McGrail, managing director of FirstMortgage, expects the Chancellor to focus in depth on the housing and mortgage market.
He said: “We hope that the FirstBuy scheme will be allowed to continue in the years ahead.”
FirstBuy was first introduced in the 2011 Budget and requires a deposit of just 5%, allowing buyers to take out a mortgage for just 75% of the overall purchase price.
McGrail added: “We have seen a significant increase in the number of first time buyer approvals as a result of this scheme and also Funding for Lending. This initiative has allowed lenders to be much more creative with the products they offer to first time buyers, especially smaller building societies such as Leeds and Accord. It is however only applicable on new build properties so we also hope for an extension of the New Buy Scheme.
“We are also predicting an extension of FLS – which will continue to boost gross mortgage lending in the UK. It would be a mistake for the Chancellor to maintain the deadline of 2014 for the scheme as it will not be enough time for the housing market to show signs of significant recovery from its recent downturn.”