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Budget 1 - 2010 (build up and reaction)


SO16_Saint
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As the chancellor prepares to talk us through (potentially) the first budget of the year, what do we think he will announce?

 

It's been suggested that he will scrap Stamp Duty >£250,000 - happy days.

 

£0.03 on fuel - not so good

 

If they hadn't removed the temporary Stamp Duty holiday at the end of the year they may have already garnered more votes...

 

Funny how they grasp the property market two months before an election....that move to £250k limit has been needed for the last 5 years.

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As the chancellor prepares to talk us through (potentially) the first budget of the year, what do we think he will announce?

 

It's been suggested that he will scrap Stamp Duty >£250,000 - happy days.

 

£0.03 on fuel - not so good

 

He mayraise Capital Gains Tax.

 

He has not increased personal allowances (announced last time) and National insurance goes up 0.5% for everyone next year (announced last time).

 

Watch this space on VAT possibly up to 20%. (if not this time then almost defo in November)

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the usual.... fuel, booze and fags will all go up.

 

 

Apparently...

 

10% extra on cider

 

2% on spirits

 

and 50p minimum per unit.

 

However they may take the step to freeze tax on alcohol as increasing it may actually reduace the overall amount of tax taken due to people drinking less.

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Everyone to have the right to a basic bank account.

 

Good idea, I've known people who have had to pay more for electric on a key card rather than direct debit and who have had to cash pay cheques in those cheque cashing places. It's not right to make the poor even poorer because they can't have a bank account.

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What he'll giveth, he'll take away.

 

This budget will be a re-arranging of the furniture with the odd surprise in a desperate attempt to buy a few extra votes.

 

Since when with whatever goverment in living memory, this close to an election, has this ever been different?

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How the hell are the Govt going to police the 'FTB' element of the Stamp Duty reduction?

 

Crazy if you ask me - it should be a cover all reduction

As someone looking to buy in the £125k-250k price range in the next 6 months, I totally agree... :mad:

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I think FTB means in practice 'nothing to sell'.

 

not really.

 

A FTB is someone who is just that - a first time buyer and has never owned a property in the past.

 

Cant find anything other than Wiki, but:

 

A first-time buyer (FTB) is a term used in the British and Irish property markets, and in other countries, for a potential house buyer who has not previously owned a property.

en.wikipedia.org/wiki/First-time_buyer

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not really.

 

A FTB is someone who is just that - a first time buyer and has never owned a property in the past.

 

Cant find anything other than Wiki, but:

 

A first-time buyer (FTB) is a term used in the British and Irish property markets, and in other countries, for a potential house buyer who has not previously owned a property.

en.wikipedia.org/wiki/First-time_buyer

 

I know. But if you buy as I did last spring after being out of the market for a while you are treated as a first time buyer by mortgage companies.

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I know. But if you buy as I did last spring after being out of the market for a while you are treated as a first time buyer by mortgage companies.

 

yes and no.

 

Im a mortgage consultant, and some lenders are more sticklers to the rules than others and if you've had a mortgage in the past, even if you've been discharged, you're still classed as NOT being a FTB.

 

regardless - it's still a cr@p initiative IMO

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They're not daft.

 

The Stamp Duty issue is still a con - it WILL make the property market recover as chains start to appear, however......

 

they know by not opening this to ALL buyers that they will not loose the majority of the potential stamp duty income..in fact it may increase it as more people can move home higher up the chain.

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Apparently...

 

10% extra on cider

 

2% on spirits

 

and 50p minimum per unit.

 

However they may take the step to freeze tax on alcohol as increasing it may actually reduace the overall amount of tax taken due to people drinking less.

 

looks like I was pretty close...

 

Chancellor stated that duty would rise 2% above inflation as planned from midnight on Sunday.

 

He also stated that 2% above inflationary rises would be extended for two years from 2013.

 

He also said that anomalies in cider duty would be corrected by a 10% above infnflationary increase. In September a new cider definition will be introduced to tax stronger cider 'more appropriately'.

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****ing Labour ****s. Cider, smokes and Petrol, the three biggest expenses in my life. Mother ****ing ****ing **** faces.

 

They might as well tax me having sex with my missus, that's the only enjoyment I can afford from now on!

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****ing Labour ****s. Cider, smokes and Petrol, the three biggest expenses in my life. Mother ****ing ****ing **** faces.

 

They might as well tax me having sex with my missus, that's the only enjoyment I can afford from now on!

 

 

really??

 

:D

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****ing Labour ****s. Cider, smokes and Petrol, the three biggest expenses in my life. Mother ****ing ****ing **** faces.

 

They might as well tax me having sex with my missus, that's the only enjoyment I can afford from now on!

 

May as well tax your birthday in that case, easier to monitor and same amount collected.

 

I agree with Buctootim's assessment of an FTB as I was also in the same position recently. If a mortgage company want's to be stickler let them and go elsewhere, plenty will treat you as an FTB.

 

The real issue as Johnny Bognor has said this is all window dressing and whilst it seems great to potentially allow an FTB to save £2,500 in stamp duty it wont get the banks to relax their lending policies or interest rates.

 

£2,500 is a small fraction of the cost of buying a home compared to interest costs and the rates of interest banks are now charging FTB's is sometimes in excess of 5% over base margins previously the preserve of unsecured personal loans.

 

Pre-crash when base rate was about 5% a mortgage provider would provide a mortgage between 0.5 and 1.5% over base now it's more like 4.5 - 6% over base. I wonder why that is................

 

So the govt gives us a little sweetener of no stamp duty but a financial system that now lends on a secured basis at margins once the reserves of unsecured lending. Tax the banks, banks maintain a high cost of borrowing with limited downside, govt encourages more house purchases, banks profits go up as does govt revenue not to mention plenty of ordinary people who are now property millionaires through no fault of their own and need potentially £50k to pour down a toilet in case they need to move for work for example and maintain their less than remarkable lifestyle.

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Me too. Just as Im getting used to it......

 

It's only the STRONGEST cider that is to be taxed 10%.

 

From my point of view, the abolition of stamp duty for first time buyers (well, for the next two years at least) is quality timing! Cheers Darling!

 

However, 3p on fuel?! Git! It's costing me £80 a week to get to work as it is!

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May as well tax your birthday in that case, easier to monitor and same amount collected.

 

I agree with Buctootim's assessment of an FTB as I was also in the same position recently. If a mortgage company want's to be stickler let them and go elsewhere, plenty will treat you as an FTB.

 

The real issue as Johnny Bognor has said this is all window dressing and whilst it seems great to potentially allow an FTB to save £2,500 in stamp duty it wont get the banks to relax their lending policies or interest rates.

 

£2,500 is a small fraction of the cost of buying a home compared to interest costs and the rates of interest banks are now charging FTB's is sometimes in excess of 5% over base margins previously the preserve of unsecured personal loans.

 

Pre-crash when base rate was about 5% a mortgage provider would provide a mortgage between 0.5 and 1.5% over base now it's more like 4.5 - 6% over base. I wonder why that is................

 

So the govt gives us a little sweetener of no stamp duty but a financial system that now lends on a secured basis at margins once the reserves of unsecured lending. Tax the banks, banks maintain a high cost of borrowing with limited downside, govt encourages more house purchases, banks profits go up as does govt revenue not to mention plenty of ordinary people who are now property millionaires through no fault of their own and need potentially £50k to pour down a toilet in case they need to move for work for example and maintain their less than remarkable lifestyle.

 

TBH it's better now than it was this time last year.

 

At least there are 'some' options for people with 10% deposit now - there weren't any then.

 

15% deposit gets people in the market at the moment (it was 20-25% last year).

 

You are correct re: 5% marker though...Halifax currently have a 90% deal charging 5.49% above Bank Base Rate for two years.

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It's only natural for joe public to look for the breaks that apply to him and his family and rightly so imho. Most of us I believe aren;t clever enough to understand the nuts and bolts of the whole buf=dget but it will always ultimatley be a case or robbing Peter to pay Paul, it's just a big money-go-round imo.

 

The biggest headline-grabber being the FTB Stamp Duty change will hopefully come at the perfect time fo me; I am hoping that this time next year i shall be sat in a cosy little place down in Deal.

 

Been trying for ages to make the big move back home and for that reason I (selfishly) want all you FTB'ers to get saving for your deposits and drag this property market up by it's braces. Some genuine bargains out there and some young families aching to mose in to a bigger house who've been duped over the past 2-3 years and are now stuck in unsuitable houses.

 

A majority of places are nearer to their genuine values right now and as I say, many many bargains to be snapped up. Don;t buy that new 50 incger, hold off on the new Renault Megane 2.5 XZTD, take a budget holiday in this country (you know deep down that you should anyway) and PM Crouchie's Lawyer to find the best FTB deals going. Get your bloody two hundred quid Nike trainers on the ladder and DO US ALL A FAVOUR.

 

That is All

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TBH it's better now than it was this time last year.

 

At least there are 'some' options for people with 10% deposit now - there weren't any then.

 

15% deposit gets people in the market at the moment (it was 20-25% last year).

 

You are correct re: 5% marker though...Halifax currently have a 90% deal charging 5.49% above Bank Base Rate for two years.

 

Brittannia have a fixed rate of 3.19% for two years with LTVs up to 85%. This is better than most of the fixed rate deals from the high street lenders where LTV ratios are 60-70%. If you are looking to remortgage, get in quick. These rates are also available to FTBs.

 

NB: I am not a Financial Advisor and am not regulated by the FSA (which means **** all in the scheme of things, because they didn't exactly regulate the fin svcs industry before it went tits up)

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Apparently the government's definition of a first-time buyer is ...

 

a) First-time buyers

 

b) Anyone who hasn't owned a property for three years

 

Well it shows that the Government are completely clueless...there's trouble ahead.

 

In 17 years in Financial Services when I've worked for banks, IFA's etc as a Mortgage Adviser and I've only come over a handful of lenders who will give you FTB status if you've owned a property in the past.

Edited by Channon's Sideburns
Updated after stevegrant's post.
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Apparently the government's definition of a first-time buyer is ...

 

a) First-time buyers

 

b) Anyone who hasn't owned a property for three years

Not according to the Q&A on the BBC website: http://news.bbc.co.uk/1/hi/business/8585903.stm

 

What constitutes a first-time buyer? I had a property a long time ago but have since lived in rented accommodation. Will I qualify? Martin, Norwich.

 

I'm afraid not. According to the Treasury, a first-time buyer is classed as someone who has not previously owned a property anywhere in the world. So even though you don't currently own your own home, the fact that you have previously means you aren't eligible for the stamp duty holiday.

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It was also sying on the bbc news this morning that for some reason even people who have previously owned a boat or caravan will also not be classed as a first time buyer. Assume this means moored boat and static caravan but still seems stupid to me.

 

That won't go down well with voters in Portsmouth.

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