What the Budget Really Means for Landlord Mortgages - Broker Explains
There are frozen tax thresholds, higher property income tax, rising dividend tax for companies, and savings tax changes. It can be confusing, but this episode makes it clear.
In the latest episode of The Investor’s Corner Podcast, we talk with Tom from Mortgage Tribe to explain what the Budget means for landlords. We cover borrowing, cashflow, taxes, and planning for the future in simple terms.
Whether you are coming up to a remortgage, thinking about using a company, or planning your next investment, this guide will help you understand what to do.
Frozen Income Tax Thresholds Until 2031
The government has frozen income tax thresholds until 2031. This means more landlords may pay higher tax as rents and wages go up.
What this means for you:
- You could pay more tax even if your income stays the same
- Borrowing could be harder because lenders look at higher taxes
- Remortgaging may be more difficult
Tom explains how lenders check affordability and what you can do to plan ahead.
Property Income Tax Rises in 2027
Property income tax will go up in 2027. This will reduce your net rental income.
You may see:
Less money from rent
Problems if you have interest-only mortgages
Challenges when refinancing
Tom shares examples of how this could affect landlords’ cashflow.
Dividend Tax Increases for Company Landlords
If you run your property through a company, dividend tax is going up. This means some of the tax benefits of using a company are smaller.
Tom explains:
- When a company is still useful
- When personal ownership is better
- Why companies do not always save tax
Savings Tax Changes
Savings tax is rising. This affects landlords saving for deposits or renovations.
Tom explains how this changes your planning and ways to save more efficiently.
Common Myths Landlords Believe
Some myths can cost landlords money:
- Interest rates will go back to very low levels soon
- Using a company always saves tax
- Affordability is just about rental income
Tom explains what you should know instead.
What the Budget Means for Landlords
You may see:
- Higher taxes
- Less cashflow
- Harder borrowing tests
- Lower profits
- Pressure on low-yield properties
But there is good news. If you plan now, you can:
- Restructure your properties before 2027
- Get better mortgage deals
- Avoid higher-rate taxes
- Protect your profits
- Prepare cashflow for the future
What You Will Learn in the Episode
- Key 2025 Budget changes for landlords
- How taxes affect rental income
- What changes mean for remortgages
- How to protect your profits
- Why planning now matters
If you are a landlord or property investor, this episode is essential. It helps you understand the Budget and make better decisions.
Contact Tom
Email: tom@mortgagetribe.co.uk
Website: www.mortgagetribe.co.uk
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Follow the show for the latest updates and share with other landlords who need to know about these changes.