Your First Home, Budget fears & 5.25% savings: 29 Sep 2026

From a new government scheme to help first-time buyers onto the ladder, to mounting pressure on Chancellor John Healey ahead of next month's Budget, and a burning question about whether to lock your savings into the best rates in years — here is everything UK consumers need to know from yesterday's top finance stories.

Your First Home: What Is It and Will It Actually Help You Buy?

The government has announced a new scheme called Your First Home, unveiled by Greater Manchester Mayor Andy Burnham at the weekend. Designed for first-time buyers who lack access to the so-called "bank of mum and dad", the programme aims to make home ownership more accessible by dramatically cutting the deposit required — reportedly down to as little as 2.5%. The announcement was enough to trigger a rally in FTSE-listed housebuilders, whose share prices climbed on the news.

The scheme is widely seen as a reheat of the Conservatives' Help to Buy equity loan programme, which ran for roughly a decade and helped hundreds of thousands of buyers purchase their first home. But there are still significant unknowns. Key details — including the full eligibility criteria, property price caps, loan terms, and how equity stakes will work — have not yet been confirmed ahead of the formal Budget announcement next month. Critics have already raised concerns about whether schemes like this simply inflate house prices rather than making them genuinely more affordable, and whether housebuilders, rather than buyers, end up as the true winners.

For now, prospective first-time buyers should treat this as promising but not yet a done deal. The Budget is expected in October, at which point more detail should emerge. In the meantime, it is worth getting your finances in order — understanding your credit profile, how much you could realistically borrow, and what mortgage products are available to you. See our first-time buyer mortgage guide for a full breakdown of the steps involved in buying your first home.

Budget Anxiety: Banks, Businesses and the Tax Question

With the October Budget drawing closer, pressure on Chancellor John Healey is intensifying from multiple directions. Revolut — Britain's most valuable fintech — is among a group of challenger banks lobbying the government to raise the threshold for the banking surcharge, a special additional tax levied on bank profits on top of corporation tax. The current arrangement means that as challenger banks grow and become more profitable, they face a sudden and steep jump in their tax burden, which the industry argues threatens the UK's competitiveness as a fintech hub.

Meanwhile, on the high street, businesses are feeling the squeeze from cost increases that have already landed. Beaverbrooks, the family-owned jeweller founded in 1919, reported a 9% fall in underlying operating profit to £7.8 million last year, with its boss publicly calling on the government to give businesses "a bit of a break". The culprits are familiar ones: higher employer National Insurance contributions and increases to the National Living Wage — both introduced in the previous government's 2024 Autumn Budget under former Chancellor Rachel Reeves. For consumers, this matters because squeezed businesses often respond by raising prices, reducing staff, or both.

Healey himself struck a firm tone in a speech ahead of the Budget, emphasising that the best thing the government can offer young people is "a job, not benefits" — a signal that welfare reform will remain central to his economic strategy. With government borrowing costs under pressure, the Chancellor has limited room for manoeuvre. For households, the key things to watch in the Budget will be any changes to income tax thresholds, National Insurance, ISA allowances, and pension tax relief — all of which could directly affect your take-home pay and long-term savings.

Should You Lock Into a 5.25% Fixed-Rate Savings Account Now?

Savers have not had a choice this good in years. Returns on the best fixed-rate savings accounts have climbed to 5.25% — their highest level in several years — and some analysts suggest rates could rise further still. That leaves anyone with a lump sum facing a genuine dilemma: lock in now and guarantee an excellent return, or hold off in the hope that even better deals emerge in the coming weeks?

The case for locking in now is straightforward. A 5.25% fixed rate is objectively strong by historical standards, and there is no guarantee rates will keep climbing — economic conditions, Bank of England decisions, and global events can all shift the picture quickly. Fixed-rate accounts also offer certainty: you know exactly what you will earn over the term, with no nasty surprises. The downside, of course, is that your money is tied up — typically for one, two, or five years — so you will not be able to access it penalty-free if your circumstances change.

For most savers, a pragmatic approach is to split your savings — locking a portion into a fixed-rate deal now to secure the strong rate, while keeping some in an easy-access account for emergencies or to take advantage of any further rate improvements. If you are unsure how to structure your savings most efficiently — particularly in the context of your ISA allowance or wider financial plan — a financial adviser can help you make the most of what is on offer. See our ISA guide to understand how to shelter your savings from tax while rates are high.

The Bottom Line

• Your First Home scheme: Promising news for first-time buyers, but wait for the Budget detail before making any decisions. Use the time to speak to a mortgage adviser and get your finances in order. See our first-time buyer mortgage guide.
• October Budget: Businesses and banks are bracing for impact. As a consumer, review your ISA, pension contributions, and tax position before any changes are announced — acting ahead of the Budget is often smarter than reacting afterwards.
• Savings rates at 5.25%: These are genuinely strong rates. If you have cash sitting in a low-interest current account, now is the time to act. Consider fixing a portion for a competitive guaranteed return, but keep an emergency fund easily accessible.
• Get advice: Whether you are buying your first home, planning ahead of the Budget, or trying to make the most of your savings, an FCA-regulated financial adviser can help you make better decisions. Nesto can match you with the right adviser for your needs.