The Conservative Party has revealed its plans for a future conservative government.
The plans include the abolition of inheritance tax, removing regulations regarding mortgages and the introduction of new lifetime savings accounts. These have had a mixed reaction from the industry.
Whilst the removal of inheritance tax is readily accepted, as too many people are being caught in the trap, removing the regulations concerning mortgages has been rejected.
Our view
Deregulation of mortgages in the United States has been a factor in the sub-prime lending crisis. As lenders are under pressure to lend more, there would be no tool to regulate that they are lending responsibly if the regulations and criteria are removed. The lifetime savings accounts have also been broadly accepted but as ever we warn against pension u-turn.
Useful links:
Learn more about mortgages and related topics in the Mortgage Adviser Channel
Learn more about inheritance tax and related topics in the Inheritance Adviser.com Channel
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