The Autumn Budget has been announced, and we're here to cut through the noise and share all the important bits that you need to know about when it comes to your mortgage.
What's changing?
There were various announcements made, but here are the ones that may affect you if you're thinking of buying or moving home soon:
1. Average UK households to save £150 a year on energy bills
The removal of the Eco energy scheme is set to offer some much-needed breathing space for many households. Scrapping this scheme should free up money to help lower energy bills.
2. Prices won’t rise as quickly as they have over recent years
The predicted lowering of energy prices thanks to the scrapped Eco energy scheme has a knock on effect across the rest of the economy, potentially resulting in a further reduction in the rate of inflation.
We’re hoping this will lead to an easing in the cost of living, giving those looking to buy a home more money to help save for a deposit.
3. ‘Mansion Tax’ confirmed on properties worth over £2million
Properties worth more than £2million will be charged £2,500 annually, while properties worth more than £5million will be subject to a £7,500 annual charge.
This will come into effect in 2028 and will be collected alongside council tax. Something to consider if you’re looking at properties in this price bracket. This surcharge is not automatically applicable to properties in Scotland or Northern Ireland as it is a matter to be decided upon by the devolved governments.
"Business as usual for housing"
We've spoken to our experts, and here's what they have to say about the Autumn Budget.
Andrew Milnes, Mortgage Adviser:
"For buyers, movers, and remortgagers, the most exciting news isn't a new policy at all - it’s the economic forecast. The prediction that inflation is finally on its way down is a signal to the Bank of England to continue gradually lowering the base rate.
"The Government's ongoing investment in planning should be acknowledged, but the proof will be in the pudding when it comes to meeting the 1.5m target.
"Despite this, the government missed some crucial chances to make buying and selling easier, such as reforming Stamp Duty and overhauling Council Tax."
Rachel Geddes, Strategic Lender Relationship Director:
"The Chancellor kept the housing industry out of the spotlight to an extent in today’s budget, delivering a welcome dose of stability and consistency for the market.
"The message for anyone looking to buy, move, or remortgage is clear: now is an increasingly favourable time to act. Don't gamble your plans by waiting for rates to bottom out. 3-4% is the new normal and isn’t going anywhere.
“This is where a mortgage adviser really comes into their own, helping you navigate the current market to secure a deal that works for you.”
What you can do now
We have a range of resources to help you continue your mortgage journey with confidence, no matter what stage you're at:
Check your affordability
Now's a great time to get started and see how much you can afford. Chances are, you can borrow more now than you could six months ago.
Your new home is within reach
Save up, plan, and track every stage of your homeowning journey with our My MAB app. Whether you're buying your first home or planning a move, this FREE app is your digital mortgage coach - right in your pocket!
Work out how much you can borrow
With our affordability tools, you can calculate how much you're able to borrow, making the task of budgeting effortless and pain-free. We'll look at what you're able to afford, and give you an estimate of your monthly repayments.
Build your own savings plan
Track how much you'll need to save and when you'll be able to buy. Work out how much you need to put aside each month and set yourself some savings goals.
Read our expert advice articles
Browse our library to answer any of your home buying questions. We know you have a bunch of questions about buying your new home, and our expert advice articles can answer the lot.
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
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