Budget could push mortgage rates higher, agent warns
Brendan Kay, of Parkers Properties, says the banks may decide to recover some of their losses through higher mortgages rates.
Higher mortgage rates may lie ahead as a result of the Budget, a West Oxfordshire estate agent has warned.
Brendan Kay, Managing Director of Parkers Properties, says Chancellor John Healey’s decision to double a tax surcharge on banks could end up costing borrowers.
He argues banks will look to recoup the cost from customers, including through higher mortgage rates.
Taxing the banks may also backfire if the banks decide to recover some of their losses through higher mortgages.”
Kay says: “I am seriously concerned about the negative impact the Chancellor’s Budget will have on first-time buyers.
“The Government may be providing more support for deposits, but this doesn’t mean mortgages are more affordable.”
Healey confirmed in the Budget that the Your First Home scheme would be available from the Spring next year.
Pre-registration will be open by the end of December, and full applications from February 2027, with the first loans issued from April.
Your First Home
The scheme will be supported by £4.7billion of Government-backed loans
Kay described the Budget as a “kick in the teeth” for first-time buyers and landlords.
He adds: “The paucity of new build homes, an acute crisis in West Oxfordshire, reduces choice and increases costs.
“Taxing the banks may also backfire if the banks decide to recover some of their losses through higher mortgages.”
