Autumn Budget 2025: Mortgage Borrowers, Here’s What You Need to Know

 

The Autumn Budget brought in several changes that could influence how much you can borrow, how manageable your repayments are and how property investment decisions stack up in the future. Now is a good time to make sure your plans are well aligned with what’s ahead.

The trusted team at Quealy & Co Financial Services Ltd. cuts through the noise and breaks down exactly what The Autumn Budget means for you.

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The Three Big Headlines for Mortgage Customers:

1. Tax thresholds frozen until 2031

Your earnings may increase over time, but tax allowances won’t, which means more of your income could fall into higher tax bands.

Why this matters: mortgage affordability assessments are based on take-home pay, so your borrowing power may not grow as much as expected.

2. Extra council tax for properties over £2 million (from April 2028)

A yearly surcharge will apply to higher-value homes. If you’re buying or already own a property above this threshold, you’ll need to build in additional annual costs.

3. Higher tax on rental and savings income (from April 2027)

Landlords and investors will see an additional 2% tax on income from property and interest.
Impact: slimmer profit margins so it’s now more important than ever to re-crunch the numbers.

What This Means In Real Terms

What to think about you’re your specific situation:

Buying your first or next home:

Budget carefully — lenders may tighten affordability calculations.  

Remortgaging soon:

Consider reviewing your mortgage earlier to protect against future rate or criteria shifts. You can secure a new rate with a new lender as early as 6 months before your current rate expires.   

Already have a mortgage:

Plan ahead for possible dips in disposable income.  

Landlord / property investor:

Reassess long-term returns after tax changes.

Market Outlook

The Bank of England remains cautious about the future path of interest rates. At their last meeting they decided to keep interest rates the same, however, four of the nine Monetary Policy Committee members voted in favour of a rate reduction. In the Bank’s view, there is potential for gradual interest rate cuts over time.

Property prices are likely to grow steadily rather than rapidly, potentially reaching just under £305,000 by 2030 on average.

Property supply may dip around the mid-2020s before picking up again toward the end of the decade.

Overall: the market remains stable, but growth is likely to be modest rather than high-powered.

Smart Moves To Make Now

• Build a buffer into your budget if buying or remortgaging.
• Start remortgage planning early - rate security could be valuable.
• Don’t push to your absolute borrowing limit.
• Landlords: review profitability under the new tax rules.

Final Thought

The property market may be moving into a more cautious phase, but with the right advice and sensible planning, you can still make confident decisions. Whether you’re buying, refinancing or reassessing your property investments, now’s the time to take control and position yourself carefully for the years ahead.

Ready to talk through your options?

For expert guidance tailored to your circumstances, get in touch with Quealy & Co Financial Services Ltd. today. We’re here to help you:

• Understand how these changes affect your mortgage options
• Find the most suitable mortgage or remortgage deal
• Review investment and affordability strategies with confidence

Contact us now to book your no-obligation consultation and make your next move with clarity and confidence:

Call us: 01795 505761

Email us: mortgages@quealy.co.uk

⁠**Your home may be repossessed if you do not keep up repayments on your mortgage.**

Quealy & Co Financial Services Ltd. is authorised and regulated by the Financial Conduct Authority No. 919693. Most Buy to Let mortgages are not regulated by the Financial Conduct Authority and will not benefit from the same regulatory protection as residential mortgages.