The Chancellor has largely left mortgages alone in recent budgets, but last week he came out fighting.
Mr Osborne said: “Buy-to-let landlords have a huge advantage in the market as they can offset their mortgage interest payments against their income, whereas homebuyers cannot. And the better off the landlord, the more tax relief they get. For the wealthiest, for every £1 of mortgage interest cost they incur, they get 45p back from the taxpayer.”
The Chancellor highlights this as a contribution to the rapid growth in buy-to-let properties, which now account for over 20% of the mortgages we arrange at Mortgage Required. The Bank of England warned us last week could pose a risk to our financial stability. Personally, I think it’s the lack of pensions we can all look forward to which has spurred the growth in this sector.
Mortgage interest relief will still remain, but we will be restricted to the basic rate of income tax. The withdrawal of the higher rate of relief will be phased in over a four-year period and only starts in April 2017.”
The other dramatic change is the basis on which “Support for Mortgage Interest” payments will be made.
Currently, homeowners receiving certain income-related benefits can get a portion of their mortgage interest paid by the government. As part of the Chancellor’s Welfare cuts, he announced in his budget that this payment will in future come in the form of a loan.
The message for me, is that it is now more important than ever to make sure your mortgage is protected. If you can’t pay it, this government won’t!
Recent posts
A recent study by Boon Brokers where 1,000 people who had used an estate agent over the last year were surveyed, showed that a whopping 52% said they were pressured into using the estate agents’ in-house mortgage broker.
When will mortgage rates fall further?
7 days ago
Analysts are predicting further rate cuts this year, with the next one possibly coming down to 4% when the Bank of England’s Monetary Policy Committee meet on Thursday 7th August 2025.
The Financial Conduct Authority (FCA) has shared new changes to mortgage rules with the aim to simplify remortgaging, and encourage competition within the mortgage market.
Lloyds boost lending for first-time buyers
14 days ago
Lloyds Banking Group has jumped on the bandwagon to boost lending for first-time buyers as they allocate an additional £4 billion to help first-time buyers on to the property ladder.
As the Loan to Income (LTI) cap has been increased to 5.5 times income, applicants who fit the First Time Buyer Boost criteria could borrow up to 22% more.
The government is introducing mortgage reforms to boost homeownership, stimulate economic growth, and make the housing market more accessible, especially for first-time buyers.
Chancellor Rachel Reeves has announced the most significant mortgage reforms in over a decade—great news for those dreaming of homeownership.
Nationwide ease criteria for first-time buyers
17 days ago
Nationwide ease their ‘Helping Hand’ mortgage designed to help first-time buyers get onto the property ladder by allowing them to borrow up to six times their income.
Ways to save money over the summer holiday
23 days ago
Keeping the kids entertained over the six-week summer holidays isn’t always easy, especially with the cost-of-living making it even more difficult. Below is a list of fun, inexpensive ideas to do over the break
The Financial Conduct Authority (FCA) has published a discussion paper about the future of the mortgage market in a bid to improve access for first -time buyers, self-employed, and those borrowing in retirement.
More information
Trusted by
