Bank of England Holds Base Rate — What It Means for Your Mortgage

2 Oct 2026 · 3 min read

The base rate decision affects millions of mortgage holders. Here's what it means for your repayments and whether now is the right time to fix.

What the base rate decision actually means

The Bank of England's Monetary Policy Committee meets roughly every six weeks to decide whether to raise, lower, or hold the base rate. In September 2026, the MPC voted to hold. While this headline looks reassuring, the practical impact on your mortgage depends entirely on what type of deal you're on.

Tracker and variable rate mortgages

If you're on a tracker mortgage that follows the base rate, a hold means your monthly payments stay exactly where they are. SVR (standard variable rate) customers may also see no change, as lenders tend to adjust their SVRs in line with base rate moves. No surprise increases — but if you were hoping for a cut to reduce your payments, you'll be waiting longer.

Fixed rates are a different story

Fixed rate mortgages are priced on swap rates — the cost at which banks lend to each other over a set term. Swap rates are forward-looking and can move significantly without any base rate change. In practice, two-year and five-year fixed rates can fall or rise even when the MPC votes to hold. With rate expectations stabilising in 2026, swap rates have edged lower — meaning competitive fixed deals are available even though the base rate hasn't moved.

What should you do now?

The right move depends on your situation. If you're on a tracker or SVR, it may be worth reviewing whether a fixed rate would give you better security. If your fixed deal ends in the next six months, you can typically lock in a new rate now and avoid any uncertainty. Speak to us before your deal expires — we search the whole market and advise on timing.

Have questions about your situation? Our team offers a free, no-obligation consultation — no upfront fees, just straightforward advice.

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