Autumn Budget 2025: The Top 5 Changes Impacting Mortgages and Property



Are you confused about what the new Autumn Budget means for homebuyers, landlords, or property investors? The 2025 Autumn Budget has introduced several key changes that could significantly impact your mortgage and property decisions. Caboodle Financial Services has all the answers you need right here.

Understanding the Budget's Impact on UK Property

Every year, the government's budget announcement sends ripples through the property market. This year is no different. Whether you're a first-time buyer trying to get on the property ladder, a homeowner looking to remortgage, or a landlord managing a portfolio, these five key changes deserve your attention.

The 5 Key Changes You Need to Know

1. Mansion Tax on High-Value Properties

What's Changing?

From 2028-29, a new 'mansion tax' will apply to residential properties valued at over £2 million. While this won't affect the majority of homebuyers, it represents a significant shift in how the government approaches taxation on luxury properties.

Who's Affected?

If you currently own a high-value property or are considering purchasing one, now is the time to review your options. Speaking with a financial adviser about remortgaging or restructuring your property portfolio before the tax takes effect could save you substantial amounts in the long run.

2. Stamp Duty Stays the Same

No Reforms This Year

Despite widespread speculation and calls for reform, stamp duty rates and thresholds remain unchanged. First-time buyers can still benefit from existing stamp duty relief, which provides a valuable tax break on properties up to certain values.

What This Means for Movers

If you're looking to move or upsize, the lack of change might be disappointing. However, careful planning and expert mortgage advice can still ensure you get the most competitive deal. Working with a specialist broker like Caboodle can help you navigate the costs and find ways to make your move more affordable.

3. New Savings Account for First-Time Buyers

Replacing the Lifetime ISA

The government is launching a brand-new savings product specifically designed to help first-time buyers. While full details are yet to be confirmed, this new account will eventually replace the Lifetime ISA and aims to make homeownership more accessible for those taking their first step onto the property ladder.

What Should First-Time Buyers Do?

Keep an eye out for official announcements about eligibility, contribution limits, and government bonuses. In the meantime, continue saving and review your current savings strategy to ensure you're maximizing every available benefit. Caboodle's advisers can help you understand how this new product fits into your homebuying journey.

4. Increased Taxes for Landlords (from April 2027)

Higher Taxes on Rental Income

From April 2027, landlords will face increased taxes on rental income, adding to the financial burden for buy-to-let investors. This follows previous reforms that have gradually reduced tax relief on mortgage interest payments.

Time to Review Your Strategy

Whether you're a seasoned landlord with multiple properties or just starting out with your first rental investment, now is the crucial time to review your financing strategy. Consider:

  • Refinancing existing buy-to-let mortgages for better rates
  • Restructuring your portfolio for tax efficiency
  • Exploring limited company structures for property ownership
  • Assessing whether your rental yields justify continued investment

Caboodle specializes in buy-to-let mortgages and can help you find the most efficient financing options to minimize the impact of these tax changes.

5. Cash ISA Limits Cut, Impacting Lenders

Reduced Allowances

The government is reducing cash ISA allowances, which may seem like a minor technical change but could have wider implications. Many smaller lenders rely on ISA deposits to fund their mortgage lending, so reduced limits could place stress on these institutions.

Impact on Mortgage Availability

This change could potentially affect mortgage availability and rates, particularly from challenger banks and building societies. However, working with an experienced mortgage broker gives you access to the whole market, ensuring you find the most competitive deals even as lenders adjust to these pressures.

How to Prepare for These Changes

Don't Wait Until It's Too Late

While some of these changes won't take effect for months or even years, planning now is the wisest approach. The property market doesn't stand still, and early preparation gives you more options and better outcomes.

Consider Your Options

Depending on your circumstances, you might want to:

  • Remortgage to lock in competitive rates before potential market changes
  • Review your buy-to-let investments and explore more tax-efficient structures
  • Maximize your savings if you're a first-time buyer preparing to purchase
  • Seek expert advice on how these changes specifically affect your situation

Get Expert Guidance

Caboodle Financial Services offers no-obligation mortgage advice tailored to your unique circumstances. Our experienced advisers help you:

✅ Navigate complex market changes with confidence
✅ Find the most competitive mortgage deals across the whole market
✅ Plan for future changes before they impact you
✅ Make informed decisions about your property and finances

Take Action Today

The Autumn Budget brings both challenges and opportunities. Understanding how these changes affect you is the first step toward making smart financial decisions.

Ready to discuss your mortgage options?

📞 Contact Caboodle Financial Services today for expert, impartial advice
🌐 Read the full budget update: https://caboodlefinance.co.uk/news/2025-budget-impact-on-mortgages/
📧 Get in touch for a no-obligation consultation

Whether you're buying your first home, moving up the property ladder, or managing a rental portfolio, we're here to help you navigate every step of your mortgage journey.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS. MOST BUY-TO-LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY. CONSOLIDATING DEBT MAY REDUCE YOUR OUTGOINGS NOW, BUT YOU MAY END UP PAYING MORE OVERALL.

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