Updated 30 September 2026
The Bank of England has held the UK base rate at 3.75%, following its announcement on 17 September. Six members of the Monetary Policy Committee voted to keep rates unchanged, while three supported an increase to 4%.
For mortgage borrowers, the effect depends on the type of deal you have. An existing fixed rate stays the same, but the rates available for a new mortgage can still change.
Why has the base rate held?
Inflation rose to 3.1% in August, remaining above the Bank’s 2% target. Higher energy prices linked to the conflict in the Middle East have added uncertainty, with the Bank expecting further inflationary pressure in the coming months.
The concern is that prolonged increases in energy costs could feed into wider price rises and wage demands. Although the committee held rates this time, its decision does not guarantee a cut at the next meeting.
What this means for your mortgage
How the decision affects you depends on your current mortgage:
- Fixed-rate mortgage: your interest rate will stay the same until your fixed deal ends.
- Tracker mortgage: if your rate tracks the Bank of England base rate, this decision alone will not change it.
- Standard variable rate: your lender sets this rate and can change it independently of the Bank of England’s decision.
If your deal is ending soon, the rates available when you arrange your next mortgage will matter more than whether the base rate in the UK changed this month.
Why fixed mortgage rates still change
The Bank of England rate influences mortgage pricing, but lenders also consider funding costs, competition and expectations about future interest rates.
Fixed deals are influenced by swap rates, which reflect conditions in financial markets. This means new fixed mortgage rates can rise or fall before the Bank changes the base rate. A hold therefore does not mean every lender will leave its deals unchanged.
Planning your next mortgage in advance
If you expect to buy a home or your current deal ends within the next six months, reviewing your options early gives you time to compare costs and prepare your application.
Depending on the lender and mortgage, you may be able to secure a rate before you need it. If a lower rate becomes available before your new deal starts, it may be possible to change products, subject to the lender’s rules and deadlines.
Consider fees and any early repayment charges alongside the interest rate. The lowest advertised rate will not always give you the lowest overall cost.
The next Bank of England rate decision is scheduled for 5 November 2026.
How Muttuo can help
Whether you’re buying a home or reviewing an existing mortgage, we can help you understand how changes in interest rates could affect your plans.
Understand what the base rate means for your mortgage
Compare suitable mortgage options from 100+ lenders
Plan ahead for your next deal, including fees and switching dates
Talk through your mortgage options
Tell us about your plans and when you need your next mortgage. We’ll help you understand your options and the costs involved.
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