Are company directors at risk of becoming mortgage prisoners?
On Friday, Santander announced that it is making changes to its affordability calculations on 6 April, taking into account not just rising energy bills and household expenditure as per the revised ONS data, but also the increase in National Insurance and dividend income tax rates.
Newspage asked brokers whether tighter affordability related to dividend income tax rates could see a lot of people who have bought big properties on exceptionally low rates end up struggling to remortgage, all the more so if their property's value has gone down? Could this result in a new demographic of highly leveraged higher net worth mortgage prisoners?