The Council of Mortgage Lenders today broadly welcomed the Chancellor’s Budget announcements on the housing and mortgage markets.
The CML is pleased that the Chancellor did not raise stamp duty, and is particularly pleased that double stamp duty on Islamic mortgages will be resolved. But the CML would have liked to see the thresholds raised, and continues to believe that longer term fundamental reform away from the existing "slab" structure of stamp duty is needed.

On fixed-rate mortgage funding, the CML looks forward to the report by David Miles on the market for longer-term fixed-rate funding in the UK. The CML also welcomes the review of housing supply, as increased supply underpins the success of the recently-announced Communities Plan.

CML Director General Michael Coogan commented:
"Probably around a third of outstanding mortgages are either fixed or capped. Most of these are short-term fixes. Fixed-rate mortgages give consumers greater certainty about their payments, but rates are typically higher, because the cost of long-term funding to lenders is also higher. In the UK’s dynamic and innovative market, consumers often choose other products such as discounts and trackers. Such products are less widely available in other European countries. Essentially, the debate will be about whether cheaper funding can be achieved for longer-term fixed rates in the UK, while not losing the benefits of flexibility that appeal to UK consumers."