September 2025: mortgage and property update

We’ve got the biggest news in mortgages this month plus the best rates

Here’s my monthly mortgage and property update sharing the most important news and changes for aspiring and existing homeowners.

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September’s mortgage and property news

What’s going on with mortgage rates?

In recent weeks, we’ve seen a real mix of activity in the mortgage market, with some lenders increasing rates while others have cut theirs. 

It’s been an interesting month economically, with a recent cut to the Bank of England base rate, which is one of many factors that play a part in what happens to mortgage rates, and inflation rising higher than expected, which, in turn, impacts the decisions made around the base rate.

We’ve done a full analysis of what’s going on with mortgage rates at the moment, and if you’re in the process of getting a mortgage or remortgaging, we’ve answered some key questions to help you decide what to do.

Reeves considers replacing stamp duty with new property tax

We could see a big change to the way property is taxed in this year’s Budget, set to take place in November. 

While nothing’s been set in stone, Treasury officials are reportedly reviewing stamp duty, officially known as Stamp Duty and Land Tax, which applies when you buy a property. It’s a really old tax, introduced back in 1694, and has had many facelifts. 

It’s a tiered tax and how much you pay depends on the price of the property (and it differs in Wales and Scotland) but it could set you back thousands of pounds. First time buyers are exempt.

But rumours have it that Rachel Reeves and co are looking to replace it with a national tax. This would be paid on properties worth more than £500,000 when they are sold.

The idea is that it’d be a more reliable, consistent source of revenue and ultimately raise the same amount as stamp duty.

But while reports suggest this new tax would only affect around one in five property sales, compared with about 60% of homes hit by stamp duty, there’s been some criticism about how it would disproportionately impact people in the cities and the south of England.

Experts have also warned that these tax changes would particularly affect downsizers, whose homes have significantly grown in value over several decades. This could put them off selling and prevent larger homes being freed up for families.

And even the speculation of this tax being introduced is likely to slow down the already price-sensitive housing market, according to estate agents. 

Warning: renters will pay for National Insurance on landlords

In other potential property tax news, we’re also hearing that the Government would like landlords to pay National Insurance on profits from rental income, which could be around 8%.

Again, it’s not been decided yet, but you won’t be surprised to hear it’s an unpopular proposal amongst the landlord community.

What’s more, there’s also a concern that these additional costs to landlords would be passed onto tenants, pushing up rents and making the already difficult housing situation even worse.

Mortgage holders facing highest financial burden since 2008 crash

Next, we’ve got some data published in the I newspaper that suggests homeowners are having to pay nearly half of their salary towards their mortgage repayments – this is the highest financial burden on households since before the 2008 financial crash.

Back in 2008, mortgage repayments were eating up 53% of salaries and right now, the average homeowner is paying 43% of their salary towards their mortgage each month – slightly lower than the 49% rate last summer, but still a huge chunk of earnings! It’s partly as a result of rising mortgage rates which are now around 5.12%, on average. 

Cheaper rates are available, as we’ll look at below, and it’s worth talking to a mortgage broker about whether locking into a fixed-rate deal could be a good option for you at the moment.

UK Mortgage Guarantee Scheme supported just 1% of mortgages in four years

It turns out the government scheme designed to help first-time buyers on the property ladder with small deposits, hasn’t been as much of a ‘lifeline’ to aspirational homeowners after all. 

The latest figures show just over 56,000 people have used the Mortgage Guarantee Scheme in the last four years, accounting for 1.4% of mortgages during that time.

As per the programme, buyers can get a mortgage with a 5% deposit, rather than the typical minimum of 10%, with the government guaranteeing the remaining 95%, and helping people buy a property who might’ve otherwise have been unable to.

But issues with the scheme made it more difficult to support buyers in more expensive parts of the country. 

The data’s disappointing to say the least, especially given that the Mortgage Guarantee Scheme was made permanent in July this year. And yet experts say the scheme doesn’t help open up the housing market – nor does it create homes or meaningfully lower borrowing costs.

Best mortgage rates

With all the movement in the mortgage market, let’s take a look at the best mortgage rates at the moment right now.

Now, these will definitely change – as they always do – and they may not be available to you as they’ll depend on your loan-to-value ratio (LTV). However, they should give you a sense of what’s out there.

If you want to find out what rates you could get for your own circumstances, do have a look at our mortgage comparison tables which give you the best deals in real time. Just go to becleverwithyourcash.com/mortgages and click ‘find today’s top mortgage rates’.

But for now, I’m going to give you some examples of the top rates currently available based on a £350,000 property, based over a 35 year term, and different sized deposits. 

I’ll go through fixed mortgage deals – which offer a fixed rate for a specific amount of time – and a selection of tracker mortgages, which are variable and move in line with the Bank of England base rate.

Best two-year fixed rate mortgage deals

Lender	Deposit size	Loan to Value	Interest rate	Monthly cost	Fee	Rate after deal ends
HSBC	£35,000	90%	4.18%	£1,428	£999	6.49%
Co-Op Bank	£70,000	80%	3.90%	£1,222	£999	6.87%
HSBC	£140,000	60%	3.75%	£898	£999	6.49%

Best five-year fixed rate mortgage deals

Lender	Deposit size	Loan to Value	Interest rate	Monthly cost	Fee	Rate after deal ends
HSBC	£35,000	90%	4.19%	£1,430	£999	6.49%
HSBC	£70,000	80%	4.07%	£1,251	£999	6.49%
HSBC	£140,000	60%	3.87%	£913	£999	6.49%

Best ten-year fixed rate mortgage deals

Lender	Deposit size	Loan to Value	Interest rate	Monthly cost	Fee	Rate after deal ends
Nationwide	£35,000	90%	4.99%	£1,588	£999	6.74%
Nationwide	£70,000	80%	4.64%	£1,350	£999	6.74%
Nationwide	£140,000	60%	4.39%	£980	£999	6.74%

Best two-year tracker mortgage deals

Lender	Deposit size	Loan to Value	Interest rate	Monthly cost	Fee	Rate after deal ends
HSBC	£35,000	90%	4.69%	£1,527	£999	6.49%
Halifax	£70,000	80%	4.28%	£1,286	£1,599	7.49%
Halifax	£140,000	60%	4.11%	£943	£1,599	7.49%