How Could Wednesday’s Budget Affect Mortgages 2025?

The Government’s Budget is coming up finally and many of us might be wondering How Could Wednesday’s Budget Affect Mortgages 2025?

Homeowners and first-time buyers might be wondering the same thing:

“Will this change my mortgage?”

The honest answer? We won’t know the full impact until the announcements are made, but we can break down the key areas that could influence the mortgage and housing market.

Below is a simple, easy-to-follow guide to what may (or may not) change — without the jargon.

🔹 1. Interest Rates – unlikely to change because of the Budget

Interest rates are set by the Bank of England, not the Government. So the Budget itself doesn’t directly change mortgage rates.

However, anything in the Budget that affects:

• inflation

• spending

• economic growth

…can influence what the Bank of England decides later.

What this means for you: Keep an eye on announcements, but don’t expect any immediate rate changes on Wednesday.

🔹 2. Possible Support for First-Time Buyers

Budgets often include measures aimed at helping people onto the property ladder.

This could be:

• changes to stamp duty

• new or extended first-time buyer schemes

• savings incentives or boosts

  
  

What this means for you: If you’re planning to buy, there may be support announced — but nothing is guaranteed.

🔹 3. Stamp Duty Adjustments

Chancellors sometimes tweak stamp duty to encourage movement in the housing market.

This could include:

• temporary cuts

• thresholds changing

• incentives for certain buyers

  
  

What this means for you: If stamp duty changes, it could impact how much you need upfront when buying.

🔹 4. Cost of Living Measures

If the Budget includes support around energy, tax, or household costs, this can help improve overall affordability.

Lenders look at:

• disposable income

• monthly commitments

• financial stability

So improvements in these areas can positively affect mortgage borrowing.

🔹 5. What You Can Do Now

While we wait for the official announcements, it’s a good time to:

• review your current mortgage

• check when your fixed rate ends

• understand your affordability

• get a general idea of options

• prepare documents early

Being ready means you can more information once the Budget details are confirmed.

🔹 Final Thoughts on

How Could Wednesday’s Budget Affect Mortgages 2025?

Budgets can influence the housing market, but the key message is simple:

Stay informed, not stressed. Most changes do not take effect immediately, and support is usually accompanied by clear guidance.

If you’d like help understanding what the Budget means for your own situation — or just want someone to talk it through with — feel free to get in touch.

Need help or want an update after Wednesday?

📩 Get in touch for a free, friendly review.

This article is for information only and does not constitute financial or mortgage advice. Mortgage products and criteria can change, including after Budget announcements. For personalised advice based on your circumstances, please contact a qualified mortgage adviser. Your home may be repossessed if you do not keep up repayments on your mortgage.

PD Finance is an Appointed Representative of Stonebridge Mortgage Solutions LTD which is authorised and regulated by the Financial Conduct Authority

Proprietor: Paul Dean | Registered Office: PD Finance 51 Moreteyne Road Marston Moretaine Bedfordshire MK43 0LQ England

07826 848247 | paul@pdfinance.co.uk | www.pdfinance.co.uk