Indeed, though naturally ties between Spain and a lesser degree Austria will be strong. They as part of the Habsburg family firm will be entangled in their struggle against their common foe.England would NOT be in union with either Austria or Spain but ONLY with the Netherlands. With this POD Mary would marry Charles V (who is Emperor but NOT ruler of Austria and Spain would be mostly under Philip’s regency). And what religious wars? Unlikely they will be much involved in the German or French ones and here England would pass from the Henrician church (who was still pretty much Catholic in doctrine and practice) back to the Catholic Church (and Scotland and Netherlands would remain mostly Catholic in this scenario)
Also England will have their own monarch, unlike Portugal, which shared their monarch after a point with Castile & Aragon, this will still be an ambition for the Spanish Habsburg branch, just like how the Austrian Habsburg branch will want to reconquer the whole of the kingdom of Hungary (including the kingdom of Croatia).
In a same vain the English Habsburgs would probably continue an already existing ambition of the English monarchy uniting the British Isles. With their Burgundian possessions England now with Spain shares the brunt of the burden in the conflicts with France, Austria contrast will probably only contribute in Italian campaigns or when the Empire is threatened.