Chancellor John Healey delivered his first Budget on Wednesday 28 October 2026. The changes that matter most to mortgage borrowers are the confirmed details of the Your First Home scheme, the further rise in tax on property and savings income, and how the gilt market reacted.

This guide covers what was announced for buyers, homeowners, landlords and savers, what happened to gilt yields, and what to do if your mortgage deal is ending. Correct at 28 October 2026.

What the Budget means for homeowners and buyers

Your First Home. The scheme launches in spring 2027 and is backed by £4.7 billion of government lending. First-time buyers of new-build homes can buy with a 2.5% deposit and a government equity loan of 20%. Household income is capped at £110,000 outside London and £140,000 in London. Property price caps are set from local authority median prices, and in London they are £650,000 in inner London and £500,000 in outer London. Our guide to the Your First Home scheme has the detail, and our page for first-time buyers covers how we help.

First Time Buyer ISA. A First Time Buyer ISA will replace the Lifetime ISA. It is due to launch in April 2029, with contributions of up to £4,000 a year and a 25% government bonus, paid when the money is used towards a first home worth up to £450,000. In the meantime, from 29 October 2026 the withdrawal charge on a Lifetime ISA used to buy a home above £450,000 falls to 20%.

Stamp duty. No change to stamp duty was announced. You can work out what you would pay with our stamp duty calculator.

High Value Council Tax Surcharge. The surcharge on homes worth £2 million or more is confirmed. It was announced before the Budget at £2,500 to £7,500 a year, with first bills in 2028.

What the Budget means for landlords

Property income tax. The Chancellor raised the rates of tax on income from property by a further two percentage points from April 2027. That is on top of the rise already legislated, and takes the rates to 24%, 44% and 49%. There is no change to tax on income from dividends or employment.

Who it applies to. This is income tax on property income. Landlords who own through a limited company pay corporation tax on the company's profits instead. Our guide to buy to let in your own name or through a limited company sets out the difference. How the change affects your own rental profit is a question for your accountant.

Our buy to let mortgage page covers lending for landlords.

What the Budget means for savers

Tax on savings income rises by the same further two percentage points from April 2027. The annual £20,000 cash ISA allowance is unchanged.

What the Budget means for mortgage rates

The Budget does not set mortgage rates. The Bank of England sets the base rate. It is 3.75% and the next decision is on 5 November 2026.

Gilt yields after the speech. Reuters reported that British markets took the Budget in their stride. The 10-year gilt yield was down 2 basis points at around 5.32% and the 30-year yield was down 3 basis points at around 5.71%.

Why gilts matter for fixed rates. Lenders price fixed rates from swap rates, and swap rates follow gilt yields. Our guide to how UK mortgages are priced explains the link, and our post on why the war in the Middle East pushed up mortgage rates covers what drove rates up this autumn.

The forecasts. The Office for Budget Responsibility forecast growth of 1.2% this year and 1% next year. The Chancellor said debt interest payments will rise by £14 billion this year.

Banks. The bank surcharge, the extra corporation tax paid by banks, rises from 3% to 6% from January 2027 for 15 months, to help fund support on energy bills.

Lenders can reprice within days. Lenders can withdraw or reprice fixed rate products within days of a market move, so a rate available today may not be available next week.

What to do now

Your deal ends within six months. Most lenders allow a new rate to be secured now, to start when your current deal ends. We can often secure a rate early and then resubmit the case nearer the completion date if rates have fallen. We compare a product transfer with your current lender against remortgage rates across the whole market.

You are buying or moving. Check what you can borrow and which rates are available for your deposit before you make an offer. Our page for home movers covers the process.

You are a first-time buyer looking at a new-build. Your First Home launches in spring 2027. Check the income and price caps against your own figures before you plan around it. We can do that with you.

You can see live mortgage rates for your own deposit and property value. It takes five questions and there is no credit check.

Your Budget Questions Answered 🙋

Does the Budget change my mortgage rate?

Not if you are on a fixed rate. Your rate and payment stay the same until the deal ends. The Budget does not set mortgage rates. Rates on new deals follow swap rates, which move with the gilt market.

Did the Budget change the Bank of England base rate?

No. The Bank of England sets the base rate, not the Chancellor. It is 3.75% and the next decision is on 5 November 2026.

When does Your First Home start?

The scheme launches in spring 2027. It is for first-time buyers of new-build homes, with a 2.5% deposit, a 20% government equity loan, household income caps of £110,000 outside London and £140,000 in London, and property price caps set from local authority median prices. Our guide to the Your First Home scheme covers the rules.

I own a buy-to-let in my own name. What changes?

Tax on property income rises by a further two percentage points from April 2027, on top of the increase already planned, taking the rates to 24%, 44% and 49%. The tax treatment of your rental profit is a question for your accountant. If you are comparing personal and limited company ownership, our guide to buy to let in your own name or through a limited company explains how lenders see each.

Should I wait to see what happens to rates before I fix?

Nobody can say where rates will go. Fixed rates follow swap rates, which move daily. If your deal ends within six months, most lenders allow a new rate to be secured now, and we can often resubmit the case nearer completion if rates have fallen. Our guide to fixing now or waiting covers the choice.

Check Your Options After the Budget

Check live mortgage rates for your own deposit and property value, or contact us to speak to one of our advisers about a purchase, a remortgage or a product transfer.