UK chancellor looks to kick start mortgages

The Chancellor in the UK has announced specific measures that will put a kick start into the mortgage and money markets sectors.

Alistair Darling was first expected to provide a budget that would not raise a lot of attention, and this one does not – except for those in the property market. The budget outlines plans to make the availability of long term mortgages more readily available. Additionally, he wants to push more money into the wholesale money markets sector. The goal is to keep the country out of turmoil.

One thing that is said to be included in the budget is an announcement of a system where mortgages would be graded based on the amount of risk they present. The least risky would be marked with a gold standard. In turn, this will provide more incentive to investors who are wary about getting into loans that may fall through. The quality of loans is more easily distinguishable.

This along with other measures has caused plenty of talk out in the property world. The Times Online offered several opinions from investors.

One such quote was from the Chief Economist at Halifax. He said, "It is disappointing that Chancellor did not take the opportunity today to address the stamp duty thresholds. The stamp duty thresholds have not kept pace with the increase in house prices for many years now. Stamp duty is hitting more homebuyers where it hurts, in their pockets. It is also becoming an issue again for first time buyers."

Nearly all comments noted the lack of help that was being offered to first time home buyers who are locked out of the current housing market.