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
Choosing to buy a house is one of the biggest decisions you are likely to make in your lifetime. There are many factors that influence a house purchase, these include: finances, housing market conditions, and mortgage rates.
ISAs: what are they, and which one is for me
3 days ago
Since being launched back in 1999 Individual Saving Accounts (ISAs) have been very popular for those wanting to put money into savings. There are four types of ISA, and the majority allow flexible saving and the ability to withdraw funds easily. There are financial penalties on certain products, these usually pay the most interest.
Benefits of buying a new build home
10 days ago
According to the Office for National Statistics, last year (ending March 2024), there were 153,800 new homes completed in the UK. To help the housing crisis, the UK government has pledged to build 1.5 million new homes in the next five years.
Check out some of the reasons why a new-build home might be for you.
Many households are still being affected by the high cost of living, with several people worrying about how they can make ends meet on a monthly-basis. Unfortunately, the cost of bills including, water, council tax, and energy are still rising. Here are some things you can do.
The Renters’ Rights Bill represents a significant milestone designed to enhance the rights and protections of tenants in the rental market. This comprehensive bill aims to foster a more balanced and fair rental sector, ensuring that tenants can enjoy greater security and equitable treatment. It is likely to become law in late 2025.
Limited Company vs Single Name Buy to Let
7 Feb 2025
Owning a buy-to-let property in your sole name versus through a limited company each has its own set of advantages and disadvantages.
Top 10 property price hotspots in 2024
1 Feb 2025
Data from Rightmove shows that Sunbury-on-Thames in Surrey was the number one house price hotspot in 2024. The prices in this area climbed an impressive 12.5% - increasing from an average price of £527,005 in 2023 to £592,926 in 2024.
Buy to Let Stamp Duty Changes April 2025
29 Jan 2025
On the 31st October 2024 stamp duty for those purchasing additional properties increased by 2% from 3% to 5%.
From 1st April 2025 the threshold will be reducing from £250,000 to £125,000
More information
Trusted by
