Budget homes plan loophole

The Treasury has still not explicitly said it will prevent homeowners from using Government-backed mortgage guarantees to buy second homes, after ITV News exposed the loophole. It is also feared the cost of the scheme could be passed onto borrowers.

Latest ITV News reports

Guarantee plan sparks new housing bubble warning

The Government's plan to guarantee billions of pounds of new mortgages could lead to a new house price bubble, some economists are warning.

And independent analysts claim tax rises or deeper spending cuts could follow the next election as the Government struggles to slash the budget deficit.

Watch Business Editor Laura Kuenssberg's report:

Economist: Loan guarantee 'could push house prices up'

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Economist: Loan guarantee 'could push house prices up'

Paul Johnson, director of the Institute for Fiscal Studies, said there is a risk that the Government's Help to Buy scheme, designed to make houses more affordable, could have the opposite effect.

Speaking to Economics Editor Richard Edgar, he said: "There is a risk that a lot of this will do more to push prices up rather than making things more affordable."

He added that the policy is a "distributional" one as it helps those without large deposits get on the housing ladder, but in some cases "that's a bigger risk".

Could the Guarantee make mortgages more expensive?

Help to Buy: What the Budget means for house buyers and mortgages

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Treasury admits mortgage guarantee scheme could be used on second homes

by - Former Business Editor

The Chancellor's loan guarantee scheme could prove to be controversial - not just because of the scale of the measures, but because it could be used for mortgages on second homes.

The Treasury did publish a list of eligibility criteria - you can't use it for buy to let or interest only mortgages - but it hasn't excluded the possibility of using the cash for second homes.

We spoke to the Treasury tonight who admitted it probably is the case as things stand. But I suspect they'll want to squeeze down on this pretty quickly when the legislation goes to consultation.

But as it is currently, the Treasury's official documents do not rule out this huge amount of Government cash being used by some people who are rather well-off already wanting to buy a second property.

Help to Buy: What the Budget means for house buyers and mortgages

How Osborne's Budget aims to boost home ownership

The big surprise in today's speech was the scale of the Government's attempt to boost home-ownership and growth in the housing market.

From next year, it will guarantee the mortgages of prospective home buyers who are struggling to find a loan and offer help on deposits for first time buyers.

Business Editor Laura Kuenssberg reports:

Q&A: What the Budget means for home buyers

Budget 2013: Winners and losers

Changes in personal income tax allowance

Chartered accountants Blick Rothenberg produced this table to show how tax-free income thresholds will change after today's Budget.

The top row shows the amount under 65s can earn tax-free. Credit: Blick Rothenberg

Under 65s can earn their first £10,000 tax-free by the start of the 2014 tax year.

By that point, people earning over £31,865 will enter the 40% higher rate tax band.

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