Brokers reveal Budget wishlist as mortgage rates top list of mortgage market concerns

Mortgage market professionals have named higher rates as the most important issue facing the mortgage market in 2026, while revealing the top measures they'd like to see introduced in next month's Budget.

Attendees at yesterday's Mortgage Adviser Expo Manchester were asked the biggest issues facing the current market, with 44% citing mortgage rates, followed by affordability (27%), house prices (10%), housing supply (also 10%), and product availability/innovation (3%).

They were then asked what one measure they would like to see introduced in next month's Budget. With free reign to answer, respondents cited everything from a cap on gas and electric prices to greater focus on the mortgage market.

16% of respondents mentioned interest rates, wanting to see measures to help reduce rising inflation and Bank Rate.

13% cited tax, with responses ranging from increasing tax thresholds in line with inflation, an increase to the personal allowance, and broader tax cuts.

13% also want to see greater support for first-time buyers, whether in the form of a new Help to Buy scheme or stamp duty reductions.

Overall, 23% mentioned stamp duty in their responses, whether for first-time buyers or downsizers, with several respondents also wanting to see a reduction in stamp duty for second properties. Then-Chancellor Rachel Reeves increased stamp duty on second homes from 2% to 5% in the 2024 Autumn Budget.

Elsewhere, 10% wanted to see greater new build help and more available housing development.

Additional responses included a minimum wage rise for working people in line with inflation, more cost-of-living support, net zero targets for lenders, and better Renters' Rights' Bill rollout.

One respondent wanted to see changes to the pensions triple lock, stating: "Large amount of pensioners have been moved out of poverty because of it - it’s therefore done its job."

In another question, attendees defied economists' consensus of a November interest rate increase, with the vote almost even between a hold and a rise. 55% think the MPC will raise interest rates, but 42.5% expect a further hold, with rate rises instead coming in 2027.

Rozi Jones, editor of Financial Reporter, commented: "Mortgage rates remain firmly at the top of the industry's list of concerns, so it's perhaps unsurprising that brokers are looking to the Budget for measures that could ease the pressure on borrowers. The range of responses also highlights that there is no single solution to the affordability challenge, with calls for action on everything from stamp duty and first-time buyer support to housing supply and taxation.

"Brokers will be looking to the Budget for more than just headline announcements. Their responses show a clear appetite for practical measures that could improve affordability and access to homeownership, particularly for first-time buyers, while also addressing the wider supply of housing.”