Other Measures

Fixed-rate Mortgages
The Housing Finance Review, launched in July, has already held discussions with a variety of mortgage lenders, investment banks, regulators, consumer groups and academics with a view to ‘improving the efficiency’ of mortgage finance markets.

A key aim is to make it possible for lenders to offer affordable long-term fixed rate mortgages of ten years or more. One proposal is for the Debt Management Office (DMO) to issue specific derivatives which may help mortgage lenders to hedge longer-term fixed rate mortgages more cost effectively, and in turn pass on the benefit to households.

The Housing Finance Review is due to report at Budget 2008.

Pensions: Technical Improvements
Several changes will be made to introduce easements to the pension scheme rules. These relate to the lifetime allowance test, protection of lump sums exceeding 25% of pension rights, taxable property provisions and inheritance tax protection on overseas pension schemes. All the changes will be backdated and take effect on and after 6 April 2006 (‘A’ Day).