The Chancellor has now delivered the Autumn Budget, and while many of the headline measures were widely anticipated, you might understandably be asking “What does all this mean for my mortgage?” Below is a breakdown of the key themes and what they could mean for your finances over the coming months.
Day-to-Day Finances
Freezing income tax and national insurance thresholds means that as your salary rises, more of your income is likely to be taxed at a higher rate. This can quietly reduce take-home pay. The minimum wage increase, however, will boost income for millions of workers, worth around £900 a year for a full-time employee. The £150 cut to average household energy bills and the fuel duty freeze should also provide some relief on everyday costs.
Families & Benefits
The lifting of the two-child benefit cap from April 2026 will be welcome news for many families. Increasing household income, helping to ease childcare and living expenses during a period of ongoing cost pressures.
Homeowners & Landlords
Higher taxes on savings, dividends and property income will particularly impact landlords, potentially squeezing profits and putting pressure on
rents. From 2028, the new Mansion Tax will apply to properties over £2m, adding an annual charge of between £2,500 and £7,500. These measures could influence property values, rent levels and mortgage decision-making.
Savings & Pensions
The reduction of the Cash ISA allowance to £12,000 (under 65s) means savers will have less tax-free space for cash. This may encourage more
people to consider investing instead. From 2029, changes to pension salary sacrif ice could also reduce the tax efficiency of retirement saving for higher earners.
Here to Help
Whether you’re reviewing your mortgage, planning to move or managing expenses, now is a sensible time to reassess your finances. If you have any questions about how the Budget could affect your mortgage or financial plans, get in touch today – we’re here to help.
If you’d like to discuss the options available to you, contact your adviser.