Interest Rate Rise Impact Calculator Wizard

Interest Rate Rise Impact Calculator Wizard

9:32 AM, 4th February 2022, About 4 months ago

Text Size

Calculating the extra amount of interest you will pay as a result of the recent 0.25% interest rate rise isn’t exactly rocket science for some people. However, if numbers isn’t your thing and/or you would like to understand how the Bank of England decision will affect your cashflow and your tax position I’ve designed the wizard below for you to use free of charge.

A common misconception is that an interest rate rise also increases the tax bill of private landlords who own mortgaged property in their own name.

The reality is that an interest rate rise does actually reduce your tax bill, so it’s not all bad news!

Therefore, I have also programmed the wizard to calculate how much extra tax credit you will receive to reduce your future tax bill.

Rate Rise Impact Wizard

This wizard calculates both the monthly cashflow impact on personal BTL mortgages (linked to base rates) assuming a 0.25% Bank of England Base Rate rise. It also calculates the increase in your tax credits to reduce you tax bill.

Step 1 of 5

I suggest you only include mortgages that are affected by base rate rise. In other words, exclude the mortgages you have fixed rates on
Does the figure above look right to you?(Required)
If not you can change it


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

BECOME A MEMBER

Landlord Tax Planning Book Now