All I want for Christmas...

Many people’s first Christmas wish for a cheaper mortgage came true this December with the bank rate drop to 5.5%. Charcol.co.uk, the complete mortgage service, looks at borrowers’ top five Christmas list wishes for Santa.

“Dear Santa, all I want for Christmas this year is….

1 For interest rates to fall (arrived already, so thanks!)

For borrowers with mortgages on tracker rates, monthly payments have reduced by an average £20.80 per £100,000 of mortgage interest. Even better news is that Bank rate could continue to fall as low as 4.5% in 2008.

2. Fairer stamp duty

Stamp Duty Land tax is currently calculated on whole cost of a property, often changing the price by several thousand pounds at certain value thresholds. It also still includes First Time Buyers, contrary to its original purpose. This massively distorts the market, and disadvantages buyers. Charcol believes in a new structure which charges ‘stepped’ percentages up the property value and has gathered a whopping 3,500 signatures agreeing with this in the last two months alone. Charcol will present this to Number 10 next year, so if you agree, please sign up here: www.charcol.co.uk/stamp-duty-petition/ and we might not have to wait for Santa to bring it for next year.

3. For HIPS to be abolished, or at least swapped for something useful

Sellers this year have been plagued by the advent of HIPS; the ominous packs which require energy reports, searches and surveys, all at a cost to the vendor. They have slowed the sale process, and provided little benefit to anyone. Dear Santa, please make this documentation such that the buying process is actually made faster, easier and cheaper as a result.

4. Free mortgage advice for borrowers in a pickle in 2008

2008 will be a tough year for many borrowers, as borrowing will be more difficult, and more expensive. Borrowers with heavy adverse credit histories needing 90% loans or more have seen their choices reduced since the liquidity crisis. A bit of advice from the experts goes a long way to sorting out your finances. Charcol does not charge a fee for its mortgage advice to borrowers with poor credit. The typical APR for poor credit business is 8.3%.

5 Magical houses which clean themselves

Dear Santa, please can you bring me a year without chores? Ok, so this one isn’t strictly achievable with just good financial advice. But a few less hours playing catch-up with your finances will give you peace of mind, and a bit more time to relax in 2008. Mortgages, credit cards, bank accounts and loans are all going to be more complicated than ever so make it your resolution to take professional advice. Use an advisor to do all the leg work in searching through available products for you, so Santa can bring you some well deserved time off for Christmas.”