The week in under a minute. The full detail is below.
💷 ISAs: what's confirmed, and what's still only proposed
There's been a lot in the press this week about ISAs, and the reporting hasn't always made clear what's settled and what's still up for discussion. So here it is in plain English, with each part labelled.
The cash ISA allowance is dropping Confirmed
From 6 April 2027, the amount you can pay into a cash ISA each year is being cut from £20,000 to £12,000, but only if you're under 65. Anyone aged 65 and over keeps the full £20,000 cash allowance. This was first announced at the Autumn 2025 Budget, so it isn't new, but it's the backdrop to this week's news. Importantly, it only affects new money you pay in from April 2027 onwards. Anything already sitting in your cash ISA is untouched and keeps its tax-free status.
A new 22% charge on cash inside a stocks and shares ISA Confirmed this week
This is the part that was confirmed this week, in the government's Tax Update on 23 June. From 6 April 2027, a 22% charge will apply to the interest earned on uninvested cash that's left sitting inside a stocks and shares ISA. The idea is to stop people sidestepping the smaller cash ISA limit by parking cash in an investment ISA instead. A few things worth being clear on:
- It applies to interest on uninvested cash only. Your actual investments, shares, funds and the like, keep their existing tax treatment. This is not a new tax on investment growth or dividends inside the ISA.
- Cash held in money market funds won’t count as cash for the charge (as long as those funds aren’t the entire ISA).
- The draft legislation still has to go through a technical consultation with the industry, with the rules due to be finalised in the autumn, but the policy itself is confirmed and the start date is 6 April 2027.
The Lifetime ISA could be replaced Proposed only
You may also have seen talk of the Lifetime ISA (LISA) being scrapped and replaced with a new First Time Buyer ISA. This is the part that is only a proposal. The government opened a consultation on it on 23 June (it runs until 17 August 2026), which means it's asking for views, not announcing a done deal. Under the proposals, the new product would launch around April 2028 and would, among other things, be open to anyone over 18 (removing the current age-40 cap), pay the 25% bonus as a lump sum at the point of purchase, and drop the unpopular withdrawal penalty. The detail that matters most, the yearly contribution limit, the property price cap and the exact bonus, hasn't been set out yet and is still to be decided. None of it is law.
If you've already got a Lifetime ISA, the key point is this: under the proposals you'd be able to carry on paying into it as normal, even after any new product launches. So there's no need to do anything in a hurry off the back of a consultation.
What it means for you: if you're a saver, the headline is that tax-free cash allowances are getting tighter from April 2027, so it's worth making good use of your £20,000 allowance while it's there. If you're saving for a first home with a Lifetime ISA, nothing changes for now, keep going. Our Lifetime ISA guide explains how the current rules and the 25% bonus work, and we'll update it as and when any of the proposals actually become law.
🏠 Mortgages: the rules could get more flexible (proposed)
The other big one this week is on the mortgage side. The regulator, the Financial Conduct Authority (FCA), has published a consultation (paper CP26/18) setting out plans to make mortgage rules more flexible and help more people get a mortgage. Again, this is a proposal at the consultation stage, not a rule change that's live today. What's being suggested:
- The self-employed and people with variable income: making it easier for lenders to offer flexible arrangements rather than turning away anyone whose income isn't a tidy monthly salary.
- Older borrowers: updating the guidance so it's easier for older homeowners to borrow against the wealth built up in their property, including for retirement interest-only mortgages.
- People with a past credit blip: encouraging lenders to look at someone's full, current situation rather than automatically saying no because of a minor or historic credit issue.
- First-time buyers: the overall aim is to widen access for people who are currently underserved by the market, while keeping consumer protections in place.
The consultation runs until 28 July 2026, and the FCA expects to publish its final rules later in the second half of the year.
What it means for you: even if you're settled in your home now, this is worth keeping an eye on. It could matter next time you come to remortgage, and it could make a real difference for your kids or grandkids trying to get on the ladder, or for anyone self-employed or with a less-than-perfect credit history who's been knocked back before. Just remember it's a proposal at this stage, so nothing's changed in how lenders assess you yet. Our remortgage guide covers how affordability is judged today.
📉 Meanwhile, in the market: rates and house prices
Away from the policy headlines, the day-to-day picture has stayed steady. The Bank of England held the base rate at 3.75% at its meeting last week, where it has now sat all year, with the next decision due on 30 July. That hasn't stopped lenders competing: several, including NatWest, Santander, Barclays, Halifax, Coventry and TSB, have carried on trimming selected fixed rates in recent weeks as their own funding costs have eased. The number of mortgage deals on the market has climbed above 7,000 (around 7,130 products on the latest Moneyfacts count), the most since March, including more choice for buyers with smaller deposits.
On house prices, the market remains gently cooling rather than falling off a cliff. The most recent figures put average annual growth at around 1.5%, with a clear north, south split: prices in Scotland, Wales, Northern Ireland and much of the north of England are rising faster than the national average, while parts of southern England and prime central London are flat or slightly down.
What it means for you: if your current deal ends within the next six months, it's a good moment to start looking, you can usually line up a new deal up to six months ahead and have it ready for the day your fix ends. If you're buying, a well-stocked market and softer prices in the south mean more room to negotiate. Our guide to mortgage rates and remortgage guide cover the timing.
👨👩👧 Protecting the people who depend on you
Here's a question worth a quiet moment: if your income suddenly stopped, because you died, or because illness or injury kept you off work, how long could your household keep going? For families with a mortgage and people who rely on that income, the honest answer is often “not very long”. That's the gap family and dependant protection is built to close, and it's the kind of thing that's easy to keep putting off until life feels less busy.
In plain English, this is about making sure the people who depend on you, a partner, children, anyone whose lifestyle leans on your income, aren't left to cope with a mortgage and bills they can't carry. There are a few different tools, and most families use a blend rather than just one:
- Life cover pays out a lump sum if you die during the policy term, designed so the mortgage can be cleared and the family keeps the home rather than a debt.
- Income protection pays a regular, replacement income if illness or injury stops you working, helping cover the mortgage and everyday costs until you're back on your feet or the policy ends.
- Critical illness cover pays a lump sum if you're diagnosed with one of a defined list of serious conditions, money you can put towards the mortgage, treatment or simply keeping the household steady while you recover.
The two things people most often get wrong are leaving it too late (cover is usually cheaper the younger and healthier you are when you take it out) and setting it up once, then never revisiting it, even as the family grows, the mortgage changes or you move to a bigger loan. The cover you arranged years ago may no longer match the people you're actually protecting today.
Already a homeowner with a family? It's worth a five-minute sense-check that your protection still matches your mortgage and your circumstances. Debbie at DS Financial can review what you have (or don't) and explain the options, with no pressure and no jargon. Just drop her a line. Our guides to protecting your mortgage and family, income protection and life insurance vs critical illness walk through how the pieces fit. (Writing a policy in trust and any inheritance tax planning sit outside mortgage advice, for those it's worth speaking to a solicitor or estate planner too.)
That's your week. If anything here raises a question about your own situation, just drop us a line, or have a no-pressure chat with Debbie at DS Financial.
General information, not financial advice. Each item above is labelled confirmed or proposed. Figures correct at the time of writing (27 June 2026).
Sources: GOV.UK, First Time Buyer ISA consultation (opened 23 June 2026), MoneySavingExpert (ISA reforms, 23 June 2026), FCA, CP26/18 Mortgage Rule Review (9 June 2026), Bank of England base rate, Moneyfacts (mortgages), Zoopla House Price Index.