Watch: the Budget, and what it means for home buyers and homeowners.
What the Budget changed Confirmed
For homeowners and buyers, it was a quiet one. Last week we set out what was rumoured and what was confirmed. Here is what actually happened on Wednesday:
| What | What happened |
|---|---|
| Stamp duty | No change. |
| Cash ISAs | The planned cut to the cash ISA allowance has been scrapped. |
| Tax on savings interest and rental income | Up 2 percentage points from April 2027. |
| Energy bills | A £100 payment for homes in council tax bands A to D. |
| Your First Home scheme | Income limits set at £110,000 per household, or £140,000 in London. |
| Mortgage costs | The Office for Budget Responsibility expects average mortgage costs to keep rising. |
None of that changes your mortgage payment directly. What moves your rate is the Bank of England, and its next decision is on Thursday 5 November. If your fixed rate ends in the next six months, that is the date to keep an eye on.
What it means for you Watch
Remortgaging to a new lender jumped by a quarter in September. Bank of England figures show remortgage approvals rose from 34,000 to 42,600. Approvals for people buying a home fell to 53,400, the lowest since December 2023.
A lot of those people are doing something to keep their payment down. In a survey by HSBC, 73% of brokers said they are seeing remortgagers add years to their mortgage.
It works. A longer term means a lower monthly payment. But you pay interest for longer, so it costs more overall.
| £200,000 at 4.5% | Monthly payment | Total interest if the rate stayed the same |
|---|---|---|
| 20 years left | £1,265 | £103,672 |
| Stretched to 25 years | £1,112 | £133,499 |
That is about £154 a month less, but roughly £29,800 more in interest over the life of the mortgage.
Stretching your term isn't always a bad idea, especially if money is tight right now. Most lenders let you overpay up to 10% a year without a charge, so you can lower the payment today and pay it back faster later, when you can. Just go in with your eyes open.
Fixed rate ending in the next year?
Put in your balance, or just what you pay now. It shows what your new payment could be at today's rates.
Work out my new payment →Thinking about buy to let? Check these first
The Budget puts tax on rental income up 2 percentage points from April 2027. If you are thinking about buying your first rental, here is what to look at before you start.
- The deposit. Most buy to let lenders want at least 25%.
- The rent has to cover the mortgage. Lenders check the rent covers the mortgage interest by a set margin, often 125% to 145%, worked out at a test rate rather than the rate you will actually pay.
- Stamp duty is higher. Buying an extra home adds 5 percentage points to each band of stamp duty in England and Northern Ireland.
- Tax on the rent. If you own in your own name, you can't take mortgage interest off your rental income as an expense. You get a 20% tax credit instead. With rental income tax going up from 2027, speak to an accountant about whether to buy in your own name or through a limited company.
If the numbers still stack up, our buy to let guide walks through the rest, and a broker can tell you which lenders will look at your plans.
That is the week. Next Saturday we will share your poll results and cover the Bank of England decision on 5 November. If you know someone whose fixed rate ends soon, send them this page.
General information only, not personal advice. Speak to a qualified adviser before making any decisions. Figures correct at the time of writing (31 October 2026) and may change quickly. The repayment example is illustrative only, calculated on a £200,000 capital and interest mortgage at 4.5%, and assumes the rate stays the same for the whole term. Your own figures will differ. Mortgage rates are subject to lender criteria and can change. Tax treatment depends on your circumstances and may change in future. Buy to let mortgages for business purposes are not regulated by the FCA. Your home may be repossessed if you do not keep up repayments on your mortgage.
Sources: GOV.UK, Budget 2026, Mortgage Solutions, all the property and tax changes from the Budget (29 October 2026), Propertymark, Budget 2026, GOV.UK, Your First Home, Bank of England, Money and Credit, September 2026, Mortgage Solutions, homeowners stretch mortgage terms (29 October 2026), HMRC, higher rates of stamp duty, Bank of England, upcoming MPC dates.