Rise in fuel costs may make it tougher to get a mortgage

We’ve all heard the news, energy prices are set to surge this year when Ofgem’s price cap rises in April from its current level of £1,277 to about £1,877. Sadly this will have a knock-on effect on users, potentially adding hundreds of pounds to household expenses.

Substantial increases in household expenses, particularly with inflation at a high level, will likely lead lenders to review their underwriting policies to ensure they are lending responsibly. This means we may start to see more restrictions on how much they are willing to lend.

According to the Sunday Telegraph, HSBC is considering tightening its mortgage affordability criteria which could limit how much it lends to borrowers. Reportedly, changes will be made in order to reflect rising energy bills caused by the increased cost of wholesale gas.

With household costs going up and an increased possibility that interest rates will continue to rise, this is a crucial time to review your current mortgage deal. Give yourself peace of mind, make sure you’re on the best deal available. Get in touch with our award-winning brokers today on 0208 364 3444. Alternatively, click the schedule a call back button below to book a time slot that suits you.

Record 47,400 Buy to Let Companies Created in 2021

Companies House data shows a 14 per cent rise in incorporations across the UK last year compared to 2020, spurred in part by changes in tax law since 2017, Hamptons said. London and the South East saw the largest increases as the number of new incorporations in those regions rose 45 per cent. Over the last year, companies took out 50 per cent of all new BTL mortgages and now make up nearly 30 per cent of outstanding BTL loans.

Dividend Tax Rate Rises Could Impact Limited Company Landlords.

Dividend tax rate increases in April could hike up payments for landlords using limited company structures. Dividends up to £2,000 are tax-free but anything above that is taxed. In April, the basic rate for dividend tax will increase from 7.5 per cent to 8.75 per cent, whilst the higher rate will go from 32.5 per cent to 33.75 per cent. The additional rate will increase from 38.1 per cent to 39.35 per cent.