Autumn Budget 2025: What this could mean for your mortgage

While we digest the full details of today’s (26/11/2025) budget, which Chancellor Rachel Reeves has just announced, our attention immediately went to the question that you’re going to ask us. 

Will this result in any changes for my mortgage? 

At first glance, not necessarily.  

There were no announcements of changes to Stamp Duty, nor were there any details of specific policies for first-time buyers or homeowners.  

We know that’s what you were hoping for.  

But a few things came to mind as we read the details.  

The cash limit ISA reduction could impact those saving for a house deposit 

We already knew that the Chancellor was planning to reduce the amount of cash people could save in an ISA. Until now, it’s been possible to save up to £20,000 cash per year tax-free, but that has now been reduced to £12,000, with the remaining £8,000 to be placed into stocks and shares ISAs.  

This could have a ripple effect elsewhere, as many building societies might be concerned that the lack of cash savings could limit how much they can lend. This will have a knock-on effect on mortgage rates.  

Why? 

That’s because the cash deposits that individuals save in building societies are used to fund mortgages and loans. If less money is put into the pot, there will be less money available to hand out.  

We’ll keep an eye on the market moves and we will always let you know if there is a better rate available for you.  

The mansion tax on £2m+ homes could impact affordability for prime properties 

If you’re searching for a £400k property, then you’re probably not worried about the so-called mansion tax that has just been announced. This is where properties in England worth £2m or more will have to pay an annual council tax surcharge of £2,500 from April 2028. This will rise to £7,500 for properties worth £5m or more.  

This could significantly impact affordability and dampen demand for prime properties.  

While the Treasury says this should only impact approximately 100,000 properties, they are disproportionately located in London and the South East. A search on Rightmove suggests that, in London alone, there are 5,340 properties for sale at a minimum price of £2 million right now. 

 This tax could make it harder for them to sell, with knock-on effects down the chain. We predict an immediate impact: price bunching below each boundary as homeowners try to minimise these costs where possible.  

If you are affected by this, options such as remortgaging, equity release, or downsizing strategies might be the answer.  

We expect mortgage rates will remain relatively high 

The biggest takeaway from today’s budget is that we think the base rates will remain relatively high, with any potential for interest rate cuts unlikely for some time.   

For homeowners and buyers, this means mortgage rates are likely to remain elevated for even longer, leaving you with less money in your pocket. Fixed-rate deals may stay relatively high, and variable rates could remain less attractive to those looking to remortgage in the near future.  

As more of the long-term details of the budget emerge, we’ll keep you posted.