Base Rate hold brings some relief but what can borrowers expect next?

Key summary:

• The Bank of England today voted to hold the Base Rate at 3.75%, meaning rates are unchanged since December 2025
• Mortgage lenders are already considering likely future rate rises when setting rates on their products
• Average two-year and five-year fixed mortgage rates are both approximately 5.39%*, based on today’s mortgage rate data (17 Sept 2026)

The Bank of England today voted to hold the Base Rate at 3.75%. The Base Rate remains unchanged since December 2025, when it was cut by 0.25%.

In setting Base Rates, the Bank of England aims to balance keeping inflation as close as possible to the goal of 2%, while keeping the country’s economy healthy overall.

Inflation measures how much the prices of goods (such as food or petrol) and services (such as train tickets or insurance) have gone up over time. The latest inflation figure of 3.1% means that goods and services are, on average, 3.1% more expensive than they were a year ago.

What’s happened to mortgage rates recently?

Average two-year and five-year fixed mortgage rates both are approximately 5.39%*, based on today’s mortgage rate data (17 September). For 2-year fixed mortgages, this is higher than the average rate of 4.25% recorded before the war in Iran started, but slightly down from around 5.43% recorded during the period of heightened tensions in April.

Matt Smith, Rightmove’s mortgage expert explains that, while a hold may be good news for some borrowers, mortgage lenders will already have been considering likely future rate rises when setting the rates on their products.

“The Bank of England’s decision to hold the base rate will come as welcome news to some mortgage borrowers, particularly those on tracker mortgages whose monthly repayments move in line with changes to the base rate. However, today’s decision is unlikely to remove all uncertainty for home-movers.

“Mortgage pricing is influenced by a range of factors beyond the Bank Rate alone. Fixed-rate deals tend to reflect market expectations in advance, and recent increases in the underlying cost of funding these products mean that lenders will continue to adjust mortgage rates, despite today’s hold.

How will borrowers be affected by the rate change?

So, how will borrowers be affected by today’s news? Matt goes on to explain what we might expect in the coming months:

“Financial markets are still pricing in the possibility of further base rate increases in the months ahead, which means borrowers shouldn’t necessarily view today’s decision as a signal that mortgage rates have reached their peak.

“For those looking to move, the most important thing remains understanding what they can comfortably afford and keeping a close eye on the range of products available. While today’s announcement provides some short-term stability, future expectations and wider economic uncertainty will continue to play an important role in mortgage pricing and home-moving decisions.”

What does the Base Rate hold mean for my current mortgage?

Changes to the Bank’s Base Rate can impact how much interest you’ll pay on loans, including mortgages. If you’re on a fixed-rate deal, your monthly payments won’t change until the end of your deal. And if you’re on a variable or tracker mortgage, this month’s Base Rate hold will mean your monthly payments remain the same.

If you’re coming to the end of your fixed-rate mortgage soon, you’ve probably already started to think about the rate you’ll be offered on your next deal. Our remortgage calculator will show you new estimated monthly repayments from your current lender, and the 10 largest UK lenders. You can also check the current average remortgage rates here.

A good way to find out how much you could borrow is to use a mortgage calculator. And to get a personalised result by applying for a Mortgage in Principle which will take you one step closer to a mortgage offer.

In July 2023, the Mortgage Charter was launched to help those struggling to meet their monthly payments, as well as borrowers who are coming to an end of their fixed rates soon.

The Mortgage Charter encourages participating lenders to offer certain support options to eligible borrowers, which may include allowing them to secure a new deal up to six months before their current rate ends. Borrowers may also consider moving to another lender, commonly known as re-mortgaging. This usually involves a full application and may include affordability and income checks, legal work and a property valuation. Eligibility, available options, fees and timescales will vary by lender and individual circumstances.

This process can take time, so it may be helpful to review your options a few months before your current deal ends. Otherwise, you may move onto your lender’s Standard Variable Rate (SVR), which could result in higher repayments than under your existing fixed-rate deal. The rates and overall costs available will depend on your circumstances, and any early repayment charges or product fees should also be considered.

What could happen to interest rates in the future?

The Bank of England’s Monetary Policy Committee meets every six weeks to discuss and vote on whether interest rates should go up or down, or stay the same. And whatever the markets predict today could all change depending on what happens in the broader economic environment.

As Matt explained above, mortgage lenders have already been adjusting their rates based on expectations of future BoE rate rises. The next decision on interest rates will be announced at 12pm on Thursday 5 November 2026.

*Average mortgage rate data provided by Podium.

Please note:

Your home may be repossessed if you do not keep up repayments on the mortgage. Rightmove is not authorised to give financial advice; the information and opinions provided in these articles are not intended to be financial advice and should not be relied upon when making financial decisions. Please seek advice from a regulated mortgage adviser.

The results of mortgage and remortgage calculators are not a recommendation or guarantee of eligibility, and the rate and repayments available to you will depend on your circumstances and lender criteria.

A Mortgage in Principle is not a mortgage offer or a guarantee that an application will be accepted, and further affordability, credit and property checks will apply.