UK mortgage rates hit a 2022 low, but buyer activity slowed due to budget uncertainty despite record home prices.

UK mortgage rates hit their lowest since September 2022, but homebuyer activity slowed due to budget-related uncertainty, despite record-high house prices. Lenders like HSBC UK expanded incentives for first-time buyers, including higher cashback for energy-efficient homes, while major banks passed Bank of England stress tests with strong capital buffers. The Financial Ombudsman Service wrote off £900,000 on a failed AI project and shifted to off-the-shelf tools. Industry firms including Pivotal Growth and Raw Capital Partners expanded into the mortgage market, reflecting growing sector activity amid rising challenges for first-time buyers, whose average age reached 34 in England and 35 in London.