Mortgage and Tax Regulation Changes

Consider mortgage and tax regulation changes that could assist couples getting onto the property ladder. One such mortgage which we have looked into is called: Barclays Bank - Family Springboard Morgage Product.

We saw this product advertised on TV, enquired at the Douglas branch to be informed this was not available in the IOM. The reason this product is not available is due to the different UK/IOM regulations and tax requirements systems linked to savings and mortgages.

This is a major UK bank with branches here in the IOM for normal banking and wealth management and feel this product could assist alot of people into owning their own homes and is available to all who meet the criteria not only first time buyers, also it could be a major boost to the IOM economy. It is unbelieveable that we comply with all the differing banking codes yet cannot access what appears to be a very good product because of regulations and tax.

Our previous Chief Minister Mr Bell campaigned for everyone to be harmonised in the current digital world. This could actually save the government money in reducing their own government mortgage schemes.

 

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Why the contribution is important

A product like this could stimulate the housing economy and help stem the flow of 19-29 year olds leaving the island as being one of the reasons they are leaving was stated -property prices/mortgages finding deposits. This product in general terms allows parents/relatives to put a secure deposit down to help young couples/families to get onto the property ladder. The deposit is held in a savings account (with interest). To our knowledge this is the only product available on the market which safeguards the relatives deposit.

After three years term the savings/deposit is returned to the relatives. The mortgage carries on as normal, the relatives receive their savings back and the bank is secure that the mortgage taken by the couple/family was a good investment. It has been reported that the property market has inflated prices putting buying property by the younger generation out of their reach therefore fueling the buy to let market, this product could also help to slow this buy to let market down.

 

by SamIOMGov on April 26, 2017 at 11:08AM

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Comments

  • Posted by LeanGreen April 27, 2017 at 18:04

    It's the same with lots of banking products eg the latest LISA Lifetime Income Savings Account where you can put £4,000 per year into a tax free account. But not available in the Isle of Man.
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