Will mortgage rates fall? Your Budget questions answered

Melania Benincasa asks

Of course, we’re not sure the answer to this question, but rates for new fixed deals have been falling in recent months.

In fact, the best deals now are the same or lower than they were before the mini-budget when Liz Truss was chancellor.

Independent forecasters at the Office for Budget Responsibility said Bank Rate, the benchmark rate, is expected to fall further.

However, with government spending driving up prices, they said interest rates would not fall as much or as quickly as they had previously forecast.

asked Ross, 27, from Bristol

Two things happened here – one was mentioned in the speech and the other was not.

First, on Thursday, the stamp duty surcharge on second homes and buy-to-let residential properties in England and Northern Ireland will rise from 3% to 5%.

Critics say this could increase the number of properties landlords want to buy and rent, potentially raising rents for landlords. The chancellor said this would provide more buying opportunities for first-time buyers.

Secondly, the stamp duty payment threshold looks set to return to its original level in April. Analysis by property portal Zoopla shows that currently around 80% of first-time buyers pay no stamp duty, but this will now fall to around 60%.

Scotland and Wales have separate but similar taxes on property purchases.

Laura from London asked

This is clearly one of the key points of contention in this Budget.

National insurance costs are likely to rise for all but the smallest businesses. Analysts and independent official forecasters say that could mean businesses pay lower wages than they would otherwise.

Business groups say it could also reduce companies’ headcount.

The chancellor said she had no choice because of the need to raise taxes.

That’s before we start the political debate about whether the NI changes breach manifesto promises.

asked Keith Anderson, 75, from Newport, who said there was speculation the amount would be limited to £100,000

From the age of 55 (or 57 from 2028), anyone with pension savings can take a quarter of their money tax-free in a lump sum, up to a maximum of £268,275.

Keith is right, there is a lot of speculation that this cap will be lowered to generate more tax revenue for the government. It prompts some people to take action earlier than they might otherwise.

I’ve talked about a lot of budgets and a lot of pension reforms are often proposed but ultimately never happen. This is another thing.

For example, this would be a relief for some people hoping to pay off their mortgage (or help their children or grandchildren get a mortgage) by taking part of their pension as a lump sum.

Carol Reed from Brighton asked

The chancellor has confirmed that the cap on bus fares on a number of routes in England will be increased from £2 to £3 in January and will be implemented for one year.

One-way bus fares will remain at £1.75 for TfL and £2 for Greater Manchester because the funding systems in these cities are different.

It’s also a good example of the differences in policy between different parts of the UK, as the devolved countries also set their own rules.

asked Neil Gilbourne, 67, of Lincoln

Inheritance tax is payable if the estate is worth more than £325,000, but any money saved in pensions currently does not count towards inheritance tax.

Anyone who dies before age 75 can generally have their remaining pension savings transferred tax-free as a lump sum or as income.

If they die aged 75 or over, their pension can still be inherited, but it is treated as income and those they leave behind may have to pay income tax.

However, from April 2027 inherited pensions will become part of the tax calculation, which may bring more inheritances into the tax calculation.