Autumn Budget 2026: what it means for homebuyers, homeowners and landlords

The Autumn Budget 2026 confirmed a new equity loan scheme for first-time buyers, reduced the Lifetime ISA withdrawal charge for some house purchases, and announced further tax increases on rental income and savings interest.

For homeowners approaching a remortgage, it hasn’t provided a guarantee of cheaper borrowing. Here’s what the announcements mean for your deposit, mortgage plans and household finances, including when the changes are due to start.

Based on the Budget announcements made on 28 October 2026. Some measures require legislation or further implementation details.

What’s been confirmed about Your First Home?

The government has committed £4.7 billion to Your First Home, an equity loan scheme intended to help around 70,000 first-time buyer households in England.

The scheme will support purchases of eligible new-build homes from participating developers. Buyers will be able to contribute a deposit of at least 2.5%, alongside a government equity loan of up to 20% and a mortgage for the remaining amount.

The Budget confirms:

• A five-year interest-free period on the equity loan, with interest gradually increasing afterwards.
• Household income caps of £110,000 outside London and £140,000 in London.
• Local property price caps, including £650,000 in inner London and £500,000 in outer London.
• Pre-registration by the end of December 2026, full applications from February 2027 and the first loans from April 2027.

A smaller deposit could make buying possible sooner for some households. However, it’s worth comparing the scheme with the deposit requirements for a standard mortgage. The equity loan is borrowing that must be repaid, and qualifying for the scheme won’t automatically mean qualifying for a mortgage.

Our Your First Home guide explains the scheme’s eligibility, costs and the details buyers still need to check.

What’s changing for Lifetime ISA holders?

From 29 October 2026, the Lifetime ISA withdrawal charge will fall from 25% to 20% when savings are used to buy a first home above the £450,000 property price cap, provided the purchase otherwise meets the qualifying rules.

This doesn’t increase the property price cap. It changes how much savers lose when buying above it.

Under the existing 25% charge, a saver loses the government bonus and some of their own money. A 20% charge reverses the bonus without that additional penalty, assuming no interest or investment movements.

For example:

	Existing 25% charge	New 20% charge
Your contributions	£4,000	£4,000
Government bonus	£1,000	£1,000
Account balance	£5,000	£5,000
Withdrawal charge	£1,250	£1,000
Amount available towards the purchase	£3,750	£4,000

This hypothetical example ignores interest, investment gains or losses, and fees.

The standard 25% charge remains for other unauthorised withdrawals. If you’re buying above £450,000, check the withdrawal process with your LISA provider and conveyancer before moving the money.

A new First Time Buyer ISA will launch in 2029

The government will introduce a First Time Buyer ISA from April 2029, replacing the Lifetime ISA for new savers.

The announced account will allow contributions of up to £4,000 a year and provide a 25% government bonus towards a qualifying first home costing up to £450,000. The maximum bonus will be £20,000.

There will be no upper age restriction. The bonus will be paid when the money is withdrawn for a qualifying purchase, avoiding the need for a withdrawal charge.

Existing LISA holders will be able to continue contributing to and using their accounts under the current rules, alongside the withdrawal-charge change described above.

This could widen access to government-supported deposit saving, particularly for older first-time buyers. However, the new account won’t be available until 2029, so it doesn’t provide an immediate alternative for someone planning to buy soon.

Will the Budget bring mortgage rates down?

There’s no guarantee that mortgage rates will fall following the Budget.

The Bank of England sets Bank Rate independently. Mortgage pricing also reflects market expectations, lenders’ funding costs and competition. The Bank’s Financial Stability Report describes how higher market interest rates have fed through to higher mortgage rates.

The Budget’s economic forecast puts inflation at a peak of 3.8% in early 2027, returning to the 2% target by the third quarter of 2028. That’s a forecast, rather than a timetable for mortgage rate reductions.

The government is also temporarily increasing the bank corporation tax surcharge from 3% to 6%, from January 2027 to March 2028. This is a tax on banks, not a direct increase in the interest rate charged on your mortgage.

If your fixed-rate mortgage is coming to an end, the useful starting point is your own position: when it expires, what payment you could afford, and which replacement deals you qualify for. Waiting for a particular Budget announcement to produce cheaper rates introduces uncertainty.

When we assess a remortgage, we compare the available rates, fees, early repayment charges and timing against the borrower’s circumstances.

How will the Budget affect landlords?

From 6 April 2027, the rates of income tax on property income will rise to:

Property income tax band	Previously announced rate for April 2027	New announced rate
Basic	22%	24%
Higher	42%	44%
Additional	47%	49%

These rates apply across England, Wales and Northern Ireland. Scotland’s position needs to be considered separately.

The increase adds another two percentage points to the rates already announced for April 2027 in last year’s Budget.

For illustration, £10,000 of taxable rental income falling entirely within one band would attract £200 more tax because of this Budget’s additional increase, before reliefs or other tax interactions.

These are personal income tax rates. They aren’t new corporation tax rates for properties held through limited companies.

For landlords, the practical question is how much rental income remains after tax, mortgage payments and other costs. Reviewing that position before remortgaging a buy-to-let property can help identify pressure on the property’s finances. A tax adviser can explain the tax consequences of your ownership arrangements.

Has stamp duty changed?

The Budget hasn’t announced a general reduction in residential purchase stamp duty or an increase in first-time buyer relief.

Under the current Stamp Duty Land Tax rules, eligible first-time buyers in England and Northern Ireland pay:

• No SDLT on the first £300,000.
• 5% on the portion between £300,001 and £500,000.
• The standard rates, without first-time buyer relief, if the purchase price exceeds £500,000.

Everyone buying jointly must meet the first-time buyer conditions to claim the relief. Separate rules, including a potential surcharge, apply to non-UK resident transactions.

The Budget does remove SDLT on rent paid under assured tenancies in England, effective from 1 May 2026. That’s a different measure from cutting the tax on buying a home.

Scotland and Wales have their own property transaction taxes.

What else could affect your deposit or household budget?

Several other measures are relevant if you’re saving to buy, managing mortgage payments or letting property.

Cash ISAs retain their £20,000 annual subscription limit. The government has decided not to proceed with reducing it. Tax rates on taxable savings income outside ISAs will rise to 24%, 44% and 49% from April 2027, although applicable savings allowances can still protect some interest from tax.

Households in council tax bands A to D in England will receive a £100 energy payment from January 2027. The temporary 0% VAT rate on domestic electricity is also being extended to 1 July 2027. These measures offer some help with bills, but don’t guarantee that a household’s total energy costs will fall.

Owners of high-value homes face further detail on the forthcoming council tax surcharge. The previously announced surcharge applies to residential properties worth £2 million and above in England from April 2028. This Budget confirms deferrals, discounts and exemptions, plus a 100% premium for properties left empty and unoccupied for at least 12 months.

Some self-employed households will receive additional support. The trading allowance will rise from £1,000 to £3,000 from April 2027, while parental pay will extend to eligible self-employed fathers, partners and adopters in Great Britain from April 2029. A change in tax treatment or benefits doesn’t automatically change how a mortgage lender calculates your self-employed income.

What should you do next?

If you’re buying your first home, establish whether the main obstacle is your deposit, the amount you can borrow, or both. Your First Home may help, but it needs to be compared with your existing options and the longer-term cost of the equity loan.

If you’re remortgaging, check your deal’s expiry date and review the options available for your circumstances. Landlords should also revisit their figures using the announced property income tax rates.

You can speak to Monday Mortgages about your deposit, income and mortgage plans, and how the relevant changes could affect your options.