AA Mortgage Services

26/11/2025

A Guide to the Autumn Budget 2025

Chancellor Rachel Reeves has delivered her 2025 Autumn Budget, the first major fiscal statement of the year for this Labour government. We wanted to provide you with an overview of the most notable announcements made in yesterday’s speech.

Personal taxation

National Insurance (NI) and income tax thresholds will remain frozen for an additional three years beyond 2028, gradually pushing more people into higher tax brackets.

The annual cash limit for under-65s using cash ISAs will be restricted to £12,000. The remainder of the £20,000 allowance must be used for investment products.

Basic and higher income tax rates applied to property, savings and dividend income will rise by two percentage points.

Wages, benefits and pensions

From April, the cap preventing households on Universal Credit or Child Tax Credit from receiving support for a third or subsequent child will be removed.

The statutory minimum wage for workers aged 21 and over will rise by 4.1%, from £12.21 to £12.71 an hour.
The minimum wage for those aged 18 to 20 will increase by 8.5%, from £10 to £10.85 an hour, as part of a move toward a single adult rate.

The basic state pension and the newer state pension will increase by 4.8% in April, exceeding current inflation, in line with the triple-lock commitment.
From 2029, employees using salary-sacrifice pension schemes will start paying NI on contributions above £2,000 a year.

The Help to Save scheme, which offers bonuses to eligible Universal Credit claimants, will be extended and expanded beyond 2027.
Housing and property

Homes in England valued at more than £2 million will be subject to a council tax surcharge of between £2,500 and £7,500, linked to a revaluation of properties in bands F, G and H.

Transport

Fuel duty will remain frozen for five months after April, then increase gradually from September 2026.
A mileage-based tax for electric and plug-in hybrid vehicles will be introduced from 2028.

Regulated rail fares in England will be frozen next year, marking the first full freeze since 1996 (although some previous rises were below inflation).
Premium car models will no longer be available through the Motability scheme, which provides cheaper vehicle leases to eligible disability-benefit recipients.

Drinking and smoking

From 2028, the tax on sugary drinks will be extended to include pre-packaged milkshakes and lattes, reversing the exemption put in place when the levy was first introduced in 2018.

UK growth, inflation and public finances

The Office for Budget Responsibility expects the UK economy to grow by 1.5% this year, up from its 1% forecast in March.

Inflation is forecast to average 3.5% this year, fall to 2.5% next year and return to the 2% target in 2027.

24/09/2025

Why Speaking to a Mortgage Broker before your mortgage deal ends could save you thousands and protect your future

Taking out a mortgage is one of the biggest financial commitments you will ever make. While securing your initial deal can feel like a major milestone, it is only the beginning.

With most UK mortgages offering two or five-year fixed rates, many homeowners will need to remortgage sooner than they realise. Failing to plan can result in paying far more than necessary and leaving your home at risk if life takes an unexpected turn.

The Cost of Doing Nothing

When your fixed-rate deal ends, your mortgage will usually move to your lender’s Standard Variable Rate (SVR). SVRs are usually four or five percentage points higher than fixed-rate deals, which could increase your monthly repayments by hundreds of pounds. Even if interest rates are higher than when you first took out your mortgage, remortgaging almost always costs less than staying on an SVR. Doing nothing could mean paying thousands of pounds more each year.

Why Speak to a Mortgage Broker
A mortgage broker works with a comprehensive panel of lenders, giving you a much better chance of finding the most competitive option for your circumstances.

Every lender has its own criteria for approving applications. Going directly to one lender increases the risk of being rejected.

A mortgage broker understands these rules and can match you to a lender who is more likely to approve your application.

A mortgage is not just about buying a home. It is also about protecting your ability to stay in it.

A mortgage broker will review protection options, including life cover, critical illness cover, and income protection. These products ensure that if illness, injury, or even death affects your household income, you and your family will still be able to afford your home. This additional level of planning gives you peace of mind and helps protect your family’s future.

Applications can be complicated, especially if you have a unique situation such as self-employment, multiple income sources, or a property of non-standard construction. A broker’s expertise helps avoid errors and delays, reducing the risk of a failed application.

Timing Is Crucial

You can apply for a new mortgage up to six months before your current deal ends. Acting early allows you to lock in a competitive rate and move seamlessly from one deal to another. Lender offers are typically valid for three to six months, giving you flexibility to plan ahead. Waiting too long increases the risk of slipping onto an expensive SVR while your application is being processed.

Other Benefits of Remortgaging
As you repay your mortgage and your home’s value increases, your loan-to-value ratio improves. This can unlock cheaper rates that were not available to you before. Remortgaging can also allow you to release some of the value in your home to fund renovations or pay off other debts. This must be carefully considered, as it will increase your monthly payments and the total interest you pay. When your current deal ends, it is often a good time to make lump-sum payments without facing early repayment charges.

Steps to Take Now

Check the exact date your current deal ends. Gather documents such as proof of income, bank statements, and ID to speed up the process.

Review your credit file to ensure there are no errors that could delay your application. Speak to a mortgage broker early to discuss both mortgage rates and protection needs.

Why It Pays to Get Advice

Going directly to your lender limits you to their products alone. A mortgage broker with access to a comprehensive panel of lenders can help you secure the most competitive deal while also advising on protection to keep your home safe. By acting early and seeking professional advice, you can save money, avoid unnecessary stress, and ensure that your family and your home are secure, no matter what the future brings.

Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

31/10/2024

Chancellor Rachel Reeves delivered Labour’s first Budget since 2010, after the party’s return to power in July’s general election.

Here’s a summary of the most notable points that were made

Personal taxes

Freeze on income tax and National Insurance thresholds to end in 2028, preventing people from being dragged into higher tax bands as their wages rise

Capital gains tax paid on profits from selling shares to increase from up to 20% to up to 24% – rates on additional property sales to stay same
Freeze on inheritance tax thresholds extended beyond 2028 to 2030
Housing

Social housing providers to be allowed to increase rents above inflation under multi-year settlement

Discounts for social housing tenants buying their property under the Right to Buy scheme to be reduced

Stamp duty surcharge, paid on second home purchases in England and Northern Ireland, to go up from 3% to 5%

Point at which house buyers start paying stamp duty on a main home to drop from £250,000 to £125,000 in April, reversing a previous tax cut
Threshold at which first-time buyers pay the tax will also drop back, from £425,000 to £300,000

Current affordable homes budget, which runs until 2026, boosted by £500m

£2 cap on single bus fares in England to rise to £3 from January

5p cut to fuel duty on petrol and diesel, due to end in April 2025, kept for another year

Wages, benefits and pensions

Legal min wage for over-21s to rise from £11.44 to £12.21 per hour from April

Rate for 18 to 20-year-olds to go up from £8.60 to £10, as part of a long-term plan to move towards a “single adult rate”

Eligibility widened for the allowance paid to full-time carers, by increasing the maximum earnings threshold from £151 to £195 a week

Business taxes
Firms to pay NI on workers’ earnings above £5,000 from April, down from £9,100 currently, with the rate increasing from 13.8% to 15%

UK debt, inflation and economic growth

Office for Budget Responsibility predicts the UK economy will grow by 1.1% this year, 2% next year, and 1.8% in 2026

Source:

BBC News (2024) Budget 2024: Key points at-a-glance. Available at: https://www.bbc.co.uk/news/articles/cdxl1zd07l1o [Accessed 30th October 2024]

Chancellor Rachel Reeves has delivered Labour’s first Budget since 2010 – here’s what you need to know.

31/10/2024

take on and what it means for you

How the chancellor’s changes to tax, benefits and pensions will affect your personal finances – we look at a range of scenarios

22/07/2024

🛡️ Don't let an accident at work derail your financial security! 💼

Accidents happen, but they shouldn't leave you struggling to make ends meet. Imagine being unable to work due to an injury sustained on the job – how would you cope with your financial responsibilities, including your mortgage?

Income protection provides a vital safety net by offering financial support if you're unable to work due to an accident at work or any other injury.

Don't leave your financial future to chance – invest in income protection today and gain peace of mind knowing that you're prepared for life's unexpected twists and turns.

Contact me to learn more about the most suitable income protection options for your needs. Your peace of mind is worth protecting! 🏠✨

18/07/2024

🛡️ Safeguard your income against unexpected job loss! 💼

Losing your job unexpectedly can be a stressful and challenging experience, especially when it comes to managing your finances.

How would you cope with your mortgage payments and other bills if you suddenly found yourself without a source of income?

Income protection offers a valuable safety net by providing you with a regular income if you're Income protection only covers you if you are unable to work because of sickness or disability.

This financial support can help you cover your essential expenses, including your mortgage, until you're back on your feet.

Don't let the fear of job loss leave you vulnerable – invest in income protection today and gain peace of mind knowing that you have a financial cushion to fall back on in challenging times.

Contact me to learn more about the most suitable income protection options for your needs. Your financial security is worth protecting! 🏠✨

15/07/2024

🛡️ Protect your mortgage and your future with critical illness cover! 🏠

Life is unpredictable, and a critical illness diagnosis can have devastating financial consequences, especially when it comes to your mortgage. Imagine facing a serious illness without the means to keep up with your mortgage payments – it's a daunting thought.

Critical illness cover provides a vital safety net by paying out a lump sum if you're diagnosed with a specified critical illness, helping you to cover your mortgage repayments and other expenses during a challenging time.

Don't leave your home and your family's financial security at risk – invest in critical illness cover today and gain peace of mind knowing that you're prepared for whatever life throws your way.

Contact me to learn more about the most suitable critical illness cover options for your needs. Your peace of mind is worth protecting! 💼✨

11/07/2024

🏡 Ready to take the exciting leap into homeownership? Let's make your dream a reality! 🌟

Being a first-time buyer is an incredible milestone, but it can also feel overwhelming.

That's where I come in – as your trusted mortgage adviser, I'm here to guide you through every step of the process with expert advice and personalised support.

From understanding your budget and exploring mortgage options to navigating the complexities of the housing market,

I'll work tirelessly to find the most suitable mortgage solution for your individual needs.

Don't let uncertainty hold you back – let's turn your homeownership dreams into a reality together!

Contact me today to schedule a consultation and take the first step towards securing your future. Your dream home awaits, and I'm here to help you make it yours! 🏡✨

Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

08/07/2024

🛡️ Protect your income and your home! 🏠

Unexpected accidents can happen to anyone, but with income protection, you can safeguard your financial stability in case of injury.

Imagine breaking a bone and being unable to work – how would you keep up with your mortgage payments?

Income protection provides peace of mind by replacing a portion of your income if you're unable to work due to illness or injury, ensuring that you can continue to meet your financial obligations, including your mortgage.

Don't leave your home and your finances vulnerable – invest in income protection today and secure a safety net for you and your loved ones.

Contact me to learn more about the most suitable income protection options for your needs. Your financial security is worth protecting! 💼✨

05/07/2024

🏡 Are you a first-time buyer ready to step into the world of homeownership? Let's make your dream a reality! 🌟

Embarking on your journey as a first-time buyer can be both thrilling and daunting, but fear not – I'm here to guide you through every step of the process with expert advice and support.

From understanding your budget and exploring mortgage options to navigating the complexities of the housing market, I'll be by your side to ensure you find the most suitable mortgage solution for your needs.

Don't let the excitement of buying your first home be overshadowed by uncertainty – reach out to me today to schedule a consultation and take the first step towards homeownership.

Your dream home awaits, and I'm here to help you make it a reality! 🏡✨

Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.