What The Latest Base Rate Means For You

Published 23 October 2026

The below article has information contained within that was correct at the time of publication but is subject to change. This is for information purposes only and does not constitute advice.

What the Latest Bank of England Base Rate Means for Your Mortgage

Updated: 23 October 2026

Written by Doug Miller, Director at Lansdown Financial Services.

Doug Miller is a mortgage broker and co-founder of Lansdown Financial Services, based in Bath, quoted in 30+ news articles including the Guardian, Sky News, This is Money and the Sun.

The Bank of England has held its base rate at 3.75%, following its latest interest rate decision on 17 September 2026.

For homeowners and buyers, the obvious question is what this means for mortgage rates and monthly repayments.

The answer depends on the type of mortgage you have. If you’re on a fixed rate, your repayments will normally remain unchanged. If you have a tracker mortgage, your rate will generally follow Bank Rate. And if your existing deal is coming to an end, changes in mortgage pricing could have a significant impact on what you pay next.

Key Points: The Short Version

Don’t have time to read the full article? Here are the five key things you need to know.

• Bank Rate remains at 3.75%: The Bank of England voted 6–3 to keep interest rates unchanged in September 2026, with three members favouring an increase to 4%.
• Fixed-rate mortgages: Your agreed mortgage rate and normal monthly repayments generally remain unchanged until your fixed deal expires.
• Tracker mortgages: If your mortgage tracks Bank Rate, September’s decision shouldn’t normally change your rate, although future decisions could.
• Fixed mortgage rates can still move: Even when Bank Rate stays the same, lenders may increase or decrease fixed mortgage rates because of changes in swap rates, funding costs and market expectations.
• Review your mortgage early: If your current deal is ending within six months, it’s worth exploring your options rather than waiting for the next Bank of England announcement.

The bottom line: The decision to hold Bank Rate doesn’t mean mortgage rates will stand still. What matters most is your existing mortgage, when your deal expires and the products available to you.

The Full Guide: What the Latest Base Rate Means for Your Mortgage

Want to understand the detail? Below, we explain why the Bank of England has held interest rates, how the decision affects different mortgage types and what you should consider if you’re buying a property or remortgaging.

In This Guide

• What happened at the latest Bank of England meeting
• Why Bank Rate and mortgage rates aren’t the same
• What the decision means for fixed and tracker mortgages
• What to do if your mortgage deal is ending
• Whether you should wait for mortgage rates to fall
• What the latest decision means for homebuyers
• When the Bank of England will next review rates
• Frequently asked questions

What Happened at the Latest Bank of England Interest Rate Meeting?

At its September 2026 meeting, the Bank of England’s Monetary Policy Committee (MPC) voted by a majority of 6–3 to maintain Bank Rate at 3.75%.

Six members voted to leave interest rates unchanged, while three preferred an increase of 0.25 percentage points to 4%.

The decision came against a backdrop of continued concerns about inflation and global energy prices.

When the Bank announced its decision, annual UK Consumer Prices Index (CPI) inflation stood at 3.1% for August, above the Bank’s 2% target.

Since then, the Office for National Statistics has reported that CPI inflation increased to 3.5% in September 2026.

Higher inflation can make the outlook for interest rates more complicated, particularly if the Bank believes price pressures could persist.

However, this doesn’t tell us exactly what the Bank will do next.

Interest rate decisions depend on a range of economic factors, including inflation, wage growth, employment, economic activity and developments in financial markets.

Our view: Rather than building a mortgage decision around predictions about the next Bank of England announcement, we’d focus on the products available and whether they suit your circumstances.

Why Doesn’t Bank Rate Determine Mortgage Rates Directly?

Bank Rate influences borrowing costs throughout the economy, but it isn’t the same as the interest rate you’ll pay on your mortgage.

Mortgage lenders set their own rates, taking account of funding costs, competition, financial market expectations and the characteristics of the borrower and property.

This is particularly important for fixed-rate mortgages.

Fixed mortgage pricing is influenced by swap rates, which help reflect the cost and risk of providing fixed-rate lending over a particular period.

If financial markets expect future interest rates to increase, fixed mortgage pricing may become more expensive even when Bank Rate remains unchanged.

Equally, fixed mortgage rates could fall before the Bank of England announces a rate cut if markets have already anticipated that decision.

A Bank Rate hold doesn’t mean a mortgage rate freeze.

Lenders can continue changing their products between Bank of England meetings.

That’s why the mortgage rates available today may differ from those offered a few weeks ago, even though Bank Rate hasn’t moved.

What Does the Latest Base Rate Decision Mean for Your Mortgage?

The immediate impact depends on the type of mortgage you have.

Mortgage type	What the 3.75% Bank Rate means
Fixed-rate mortgage	Your agreed interest rate normally stays unchanged during your fixed period.
Tracker mortgage	A tracker linked directly to Bank Rate will generally remain unchanged following this decision, subject to its terms.
Standard variable rate (SVR)	Your lender can decide whether to change its rate, independently of the Bank Rate decision.
New mortgage or remortgage	Available fixed rates can still rise or fall as market conditions and lender pricing change.

If You’re on a Fixed-Rate Mortgage

For most borrowers with an existing fixed-rate mortgage, the Bank’s latest decision won’t change their monthly repayments immediately.

If you secured a fixed interest rate of 4.5% for five years, for example, that rate will normally remain unchanged throughout the fixed period.

This provides certainty over your agreed interest rate, regardless of movements in Bank Rate.

However, what happens when your fixed-rate deal expires is a different matter.

If your deal has several years remaining, today’s mortgage pricing may have little immediate relevance to your monthly payments.

If your fixed period ends in three or four months, the products available now are much more important.

You could be moving from a relatively low interest rate onto a higher one, or potentially benefiting from a more competitive rate than your previous deal.

The important thing is to understand your options before your current mortgage expires.

If You Have a Tracker Mortgage

Tracker mortgages typically follow another interest rate, most commonly Bank Rate, plus an agreed margin.

For example, your mortgage might track:

Bank Rate + 0.75%

With Bank Rate currently at 3.75%, your mortgage interest rate would be 4.50%.

The following examples demonstrate how that could change.

Bank of England Bank Rate	Example tracker mortgage rate
3.50%	4.25%
3.75% (current)	4.50%
4.00%	4.75%

Illustrative tracker mortgage based on Bank Rate plus 0.75%, excluding any applicable minimum rate floor.

Because Bank Rate remained unchanged in September, a mortgage tracking Bank Rate directly wouldn’t normally change because of that decision alone.

However, future increases or reductions could affect your monthly repayments.

The timing of any change depends on the terms of your mortgage.

If You’re on Your Lender’s Standard Variable Rate

A standard variable rate, or SVR, is set by your mortgage lender.

Unlike a tracker mortgage, it doesn’t have to move in line with Bank Rate.

Many borrowers move onto their lender’s SVR automatically when an existing mortgage deal expires and they haven’t arranged another product.

SVRs are often more expensive than other mortgage deals available to eligible borrowers.

There can be circumstances where remaining on an SVR makes sense, particularly if flexibility is important or you plan to repay the mortgage shortly.

However, we’d generally recommend reviewing your options rather than staying on an SVR simply because your previous mortgage deal has ended.

My Fixed-Rate Mortgage Is Ending Soon. What Should I Do?

If your mortgage deal is approaching its end, we’d normally recommend starting to review your options around six months beforehand.

That gives you time to compare the products offered by your existing lender with those available elsewhere.

It also means you aren’t forced into making a rushed decision during the final days of your fixed period.

Depending on the lender and product, you may be able to secure a new mortgage rate in advance.

And if mortgage pricing changes before your new deal starts, there may be opportunities to review the product you’ve selected.

When considering your next mortgage, we’d look at more than simply the interest rate.

The monthly repayments, mortgage term, product fees, early repayment charges and flexibility are all important.

Your personal circumstances may also have changed since you arranged your previous deal.

Perhaps your income has increased, you’ve become self-employed, your property’s value has changed or you’re considering borrowing additional funds.

All of these factors can influence which mortgage is most suitable.

Is your fixed-rate mortgage coming to an end?

At Lansdown Financial Services, we can review your current arrangements, compare suitable mortgage products and help you understand the potential impact on your repayments.

Contact our team or call 01225 459515 for free mortgage advice.

Should You Wait for Mortgage Rates to Fall Before Remortgaging?

This is understandably one of the biggest questions for borrowers approaching the end of their fixed-rate mortgage.

With Bank Rate at 3.75% and future decisions uncertain, it’s tempting to wait and see whether cheaper mortgages become available.

However, trying to predict exactly when mortgage rates will reach their lowest point is extremely difficult.

You could delay arranging a mortgage because you expect interest rates to fall, only for fixed mortgage pricing to increase as market expectations change.

Equally, you could secure a mortgage now and find that cheaper products become available later.

Nobody can reliably predict every movement in the mortgage market.

Rather than concentrating solely on where interest rates might go, we’d consider whether the mortgage available today is affordable and appropriate.

If you have already secured a new mortgage product and rates subsequently fall before it takes effect, it may be possible to change to a more competitive deal.

That depends on the lender, the mortgage terms and the stage of your application or switch.

The sensible approach is to review your options in good time and make decisions based on the circumstances you can control.

What Does the Latest Base Rate Mean If You’re Buying a Home?

If you’re currently buying a property, we’d concentrate more on the mortgage products available to you than the headline Bank Rate.

Your deposit, income, affordability and the type of property you’re purchasing will all influence the products you can access.

The decision between a two-year fixed mortgage, five-year fixed mortgage or tracker product should also reflect your future plans.

For example, a five-year fixed rate may provide greater payment certainty, but could involve early repayment charges if you need to leave the mortgage during that period.

A shorter fixed-rate period may offer an earlier opportunity to review your deal, although you could face higher rates when it ends.

There isn’t one mortgage that’s right for everyone.

If you’ve already secured a mortgage offer and interest rates change before completion, it’s also worth checking whether a more suitable product has become available.

At Lansdown Financial Services, we can review the options available as your application progresses rather than assuming the mortgage originally selected must remain unchanged until completion.

What Should You Do Following the Latest Base Rate Decision?

The most appropriate action depends on where you are with your mortgage.

Your situation	What to consider
Your fixed rate has several years remaining	Your agreed rate is normally unaffected. Make sure you know when your deal expires.
Your fixed rate ends within six months	Start comparing new mortgage products and reviewing your options.
You’re currently on an SVR	Check whether a more competitive deal is available.
You have a tracker mortgage	Understand how future Bank Rate changes could affect your repayments.
You’re buying a property	Focus on affordability, suitable products and your future plans rather than trying to time the market.
You’ve secured a mortgage but haven’t completed	If pricing improves, check whether your lender allows you to switch products.

This is general information rather than personalised mortgage advice. The right approach depends on your circumstances and the mortgage terms.

Are Mortgage Rates Likely to Fall in 2026?

It’s impossible to predict with certainty.

The September Bank of England decision illustrates why.

Although Bank Rate remained at 3.75%, three of the nine committee members preferred an increase.

The latest CPI inflation figures, released in October, also showed inflation increasing to 3.5% in September.

That highlights the uncertainty surrounding future interest rate decisions.

However, even if the Bank changes Bank Rate at an upcoming meeting, fixed mortgage pricing won’t necessarily follow by the same amount.

Financial markets are constantly adjusting their expectations, and those expectations influence lenders’ funding costs.

Our advice would be not to make a major mortgage decision based solely on expectations of future rate cuts or increases.

Instead, consider the mortgages available now, how much they would cost and whether they provide the certainty or flexibility you need.

When Is the Next Bank of England Interest Rate Decision?

The next scheduled Bank of England Monetary Policy Committee decision is Thursday 5 November 2026.

A further meeting is scheduled for Thursday 17 December 2026.

The Bank normally announces interest rate decisions eight times each year.

These announcements are important, but remember that mortgage rates can move before, between and after Bank of England meetings.

You don’t necessarily need to wait for the next decision before reviewing your mortgage.

You can follow the latest decisions and upcoming announcements directly on the Bank of England website.

Frequently Asked Questions

What Is the Current Bank of England Base Rate?

As of 23 October 2026, Bank Rate is 3.75%, following the Bank of England’s decision on 17 September to leave it unchanged.

Will My Mortgage Payments Fall If Bank Rate Is Cut?

It depends on your mortgage. Tracker rates generally move with the interest rate they track, subject to product terms. Standard variable rates may change at the lender’s discretion. Fixed-rate mortgage payments normally remain unchanged during the agreed fixed period.

Can Fixed Mortgage Rates Change Without Bank Rate Moving?

Yes. Fixed mortgage pricing is influenced by swap rates, funding costs, market expectations and lender competition. This means lenders can increase or decrease fixed mortgage rates even when Bank Rate stays the same.

Should I Wait Until November to Arrange My Mortgage?

Not necessarily. Mortgage rates may change before or after the next Bank of England announcement, and waiting doesn’t guarantee a better deal. Reviewing your options early can help you make an informed decision.

How Lansdown Financial Services Can Help

Interest rate headlines can make mortgage decisions feel more complicated than they need to be.

At Lansdown Financial Services, we take the time to understand your circumstances, your current mortgage arrangements and your future plans, helping you make an informed decision based on the products available.

Whether you’re buying a property, remortgaging or approaching the end of a fixed-rate deal, our award-winning mortgage advisers can explain your options and help you understand what different mortgage rates could mean for your monthly repayments.

As a free, whole-of-market mortgage adviser with access to more than 70 lenders, we provide straightforward, personalised advice without the jargon.

We can’t predict exactly where mortgage rates will go next, but we can help you find a mortgage that works for your circumstances, whichever direction interest rates move.

Concerned about the latest interest rate decision, or is your current mortgage deal coming to an end?

Contact Lansdown Financial Services or call 01225 459515 to speak to one of our award-winning mortgage advisers for free, expert mortgage advice.

Your home may be repossessed if you do not keep up repayments on your mortgage.

About the Author

Written by Doug Miller, Director at Lansdown Financial Services.

Doug Miller is a mortgage broker and co-founder of Lansdown Financial Services, based in Bath, quoted in 30+ news articles including the Guardian, Sky News, This is Money and the Sun.