Autumn Budget 2026: What It Means for Your Mortgage

Chancellor John Healey delivers the Autumn Budget on Wednesday 28 October, his first since taking the job. Property tax speculation has been running since the summer, and most of it has been wrong.

At Drummonds Finance Group the question we are being asked most often is whether to hold off on a purchase or a remortgage until the Budget has been and gone. This sets out what is already law, what has been ruled out, what is still guesswork, and what any of it means for your mortgage.

The short version is that almost nothing worth waiting for is likely to change on 28 October, and two things that do affect property owners are already settled.

What is already confirmed

Two property tax changes are law regardless of what is announced this month.

From April 2027, individual landlords will pay separate income tax rates on property income of 22%, 42% and 47%, which is two percentage points above the equivalent general rates. The Finance Act 2026 sets this out. Landlords who hold property through a limited company are not affected, because companies pay corporation tax on rental profit rather than income tax.

From April 2028, a High Value Council Tax Surcharge applies to English homes worth £2 million or more, charged alongside normal council tax at between £2,500 and £7,500 a year depending on value. This was announced in the November 2025 Budget.

Neither is speculation and neither depends on 28 October.

What has been ruled out

Stamp duty is not changing at this Budget. The Prime Minister ruled it out on 27 July, and the government has also denied reports that stamp duty and council tax would be replaced with an annual charge on property value. Number 10 rejected that specifically on 9 September.

So the system stands as it is. The 5% surcharge on additional properties remains, and capital gains tax on residential property is unchanged at 18% and 24% for the 2026/27 year with a £3,000 tax-free allowance.

It is worth noting that the stamp duty commitment covered this Budget rather than the whole Parliament. It is not a permanent guarantee, but for anything you are doing this autumn it is the only timeframe that matters.

What is still speculation

Speaking in September, the Chancellor declined to rule out tax rises in general, which is standard practice before a Budget and tells you very little. The Treasury is reported to be looking at capital gains tax, and there has been talk of lowering the £2 million threshold on the council tax surcharge or increasing the charges. None of this is confirmed.

Pre-Budget speculation travels much faster than actual policy, and a good deal of it never happens. Making a property decision on the strength of a newspaper report is rarely a good idea.

Should you delay buying or remortgaging until after the Budget?

In almost every case, no.

If you are buying, the tax treatment of your purchase is not changing at this Budget. Delaying means a longer chain, a stale mortgage offer, and the risk that rates move against you while you wait. Our first-time buyer and moving home pages cover the timings involved.

If you are remortgaging, the argument for waiting is weaker still. Nothing announced on 28 October will change what you owe or what your options are. What could change is pricing, and not in your favour. Most lenders let you secure a rate three to six months ahead of your deal ending, and you can usually move to something better if pricing improves before completion. Waiting has a cost and securing early does not.

Our remortgage and product transfer pages explain how the two compare.

What landlords should actually be planning for

The April 2027 income tax rise is the change worth your attention, and it arrives whatever happens this month. Two percentage points on rental profit is not catastrophic in isolation, but it lands on top of Section 24 and a decade of tightening, and it applies to individuals rather than companies.

That naturally raises the question of whether to hold property through a limited company. It is not a straightforward yes. Incorporating an existing portfolio can trigger capital gains tax and a fresh stamp duty charge, limited company buy-to-let rates are typically higher, and the admin is heavier. For some landlords it works comfortably and for others it costs more than it saves. Our page on limited company versus personal name buy-to-let goes through the trade-offs, and if you hold four or more properties our portfolio landlord page covers how lenders assess you.

What we would say is that this is a decision to take with an accountant on the tax side and a broker on the lending side, and to take before April 2027 rather than in the month it starts.

The Budget and mortgage rates

There is one indirect effect worth understanding. Fixed mortgage rates are priced off swap rates, which move with expectations for inflation and interest rates. A Budget that markets read as inflationary pushes those expectations up, and lenders reprice accordingly.

The timing makes this more pointed than usual. The Bank of England's next rate decision is on 5 November, eight days after the Budget, and it comes with a full Monetary Policy Report. The Monetary Policy Committee will have seen how gilt markets responded to whatever is announced.

So the Budget may well affect what you pay, just not through the tax system. That is another reason not to leave a rate decision sitting on the table through late October.

Frequently asked questions

When is the Autumn Budget 2026?

Wednesday 28 October 2026. The Office for Budget Responsibility publishes its economic and fiscal outlook on the same day.

Is stamp duty changing in the Budget?

No. The Prime Minister ruled out changing or scrapping stamp duty at this Budget on 27 July, and the government has separately denied plans to merge stamp duty and council tax into an annual property tax.

Should I wait until after the Budget to buy a house?

There is no tax reason to wait, because the treatment of your purchase is not changing. Delaying adds risk to your chain and exposes you to rate movements in the meantime.

What is the landlord tax change in April 2027?

Property income will be taxed at separate rates of 22%, 42% and 47% for individual landlords, two points above the general rates. Landlords holding through a limited company are not affected.

What is the mansion tax and when does it start?

A High Value Council Tax Surcharge on English homes worth £2 million or more, starting April 2028, charged at between £2,500 and £7,500 a year on top of normal council tax.

Talking it through

We are a whole-of-market mortgage broker based in Oxfordshire, advising clients across the UK. We work with plenty of landlords weighing up the April 2027 change, and with buyers and homeowners wondering whether the Budget should alter their plans.

If you have a deal ending, a purchase in progress, or a portfolio decision to make, get in touch. We will update this page after 28 October with whatever is actually announced.