CML responds to pre-budget and comprehensive spending review

The Council of Mortgage Lenders welcomes the Chancellor's effective doubling of the inheritance tax threshold for the estates of married couples in today's pre-budget statement.

CML director general Michael Coogan said:

"With the estates of married couples now exempt up to £600,000, rising to £700,000 by 2010, the effect is broadly the same as if the Chancellor had fully indexed the inheritance tax threshold for the effect of house price movements since Labour came to power, which would have resulted in an exemption threshold of £608,600.  This is welcome news.

"On fixed-rate mortgage funding, we look forward to seeing the proposals that the Chancellor said he will bring forward in the budget.  There is a key trade-off for borrowers in choosing a longer-term fix, relating to the potential costs of exiting the deal early, and this is the key feature that needs to be addressed to stimulate mainstream consumer appetite.

"While a modest measure, we also welcome the increased spending on flood defences now committed by the government, and the desire to build more homes.  But it is crucial that these measures go hand-in-hand to achieve sensible results and minimise the number of homes at risk of flooding."