What the Autumn 2025 Budget Means for Mortgages and Homebuyers

The Autumn 2025 Budget is one of the most anticipated events of the year for homeowners, buyers, and investors alike. With the UK housing market still adjusting to fluctuating interest rates and affordability pressures, even small policy changes can make a big difference.

This year’s Budget is expected to address housing affordability, mortgage accessibility, and incentives for energy-efficient homes — three areas that have dominated the headlines since mid-2024.

So, what could it mean for you? Let’s break down the potential mortgage impacts for different types of buyers and homeowners.

Interest Rate Outlook and Market Stability

While the Budget doesn’t directly control mortgage rates, its fiscal measures heavily influence inflation and Bank of England decisions.

If the Chancellor signals tight control on public spending and inflation expectations fall, we could see a gradual easing of mortgage rates over 2026.

Analysts suggest fixed-rate deals may stabilise around the 4%–4.5% range — far below the peaks of 2023, but still above pre-pandemic levels.

For borrowers nearing the end of a fixed deal, now is the time to review remortgage options before lenders adjust to new forecasts.

First-Time Buyer Relief and Housing Access

There’s strong speculation that the government will extend or reform stamp duty relief for first-time buyers, keeping the £425,000 threshold in place until at least 2026.

Other expected measures include expanded mortgage guarantee schemes, making it easier for those with smaller deposits (as low as 5%) to secure mainstream deals.

This would be welcome news for aspiring buyers in areas like London and the South East, where affordability remains a key barrier.

Support for Energy-Efficient Homes

Following ongoing environmental targets, the 2025 Budget is expected to incentivise green home upgrades through potential tax credits or improved access to “green mortgage” discounts.

Lenders such as Barclays, NatWest, and Nationwide already offer lower rates for homes with EPC ratings of A or B — and this could expand post-Budget.

For homeowners planning renovations, improving energy performance could not only cut bills but also increase mortgage eligibility and resale value.

Impact on Buy-to-Let Landlords

Buy-to-let investors continue to face headwinds from both higher borrowing costs and changing regulation.

However, the 2025 Budget may introduce incentives for energy-efficient rental properties and small tax adjustments to ease landlord pressure.

Those operating through limited company structures could particularly benefit if corporation tax thresholds or allowances are revised. Professional tax advice remains key here.

What You Can Do Now

Regardless of the final announcements, there are smart steps you can take before the Chancellor speaks:

Lock in a remortgage rate early – most lenders allow a 3–6 month window
Review affordability and credit standing – a small improvement can open access to better lenders.
Speak with a whole-of-market broker – at Mortgage Knight, we compare over 90 UK lenders to find suitable options for your circumstances.

Case Studies

Case Study 1: Sarah – First-Time Buyer in Manchester

After the 2025 Budget introduced a continuation of stamp duty relief, Sarah bought her first home with a 5% deposit through Halifax. The government guarantee gave her lender confidence to approve the loan, saving over £3,000 in initial costs.

Case Study 2: James – Remortgaging in Kent

James’ 2-year fixed rate was ending. Post-Budget stability helped lenders release more competitive 5-year deals. He locked in a 4.19% rate with Nationwide, cutting his monthly payment by £180.

Case Study 3: Priya – Buy-to-Let Investor in Birmingham

Priya owned two rental properties under her personal name. Following new tax guidance in the Budget, she incorporated them into a limited company — improving her net yield by 1.2% annually.

Professional Contractor Mortgage Guidance

The Autumn Budget could change how much you can borrow — and what deals are available.Before rates move, get a personalised mortgage review from our expert team.

👉 Speak to Mortgage Knight today — we compare 90+ lenders to find your best match.