Bank of England Interest Rate Held at 3.75% | September 2026

Interest Rates & Mortgages September 18, 2026

Bank of England Holds Interest Rate at 3.75% – September 2026: What It Means for Home Buyers and Mortgages

The Bank of England has kept Bank Rate unchanged at 3.75% following its latest Monetary Policy Committee meeting, with the decision published on 17 September 2026. The Monetary Policy Committee voted by a majority of 6–3 to keep the rate at 3.75%. Three members preferred to increase Bank Rate by 0.25 percentage points to 4%.

Latest position: Bank Rate remains at 3.75%. The next Bank of England interest rate decision is scheduled for 5 November 2026.

September 2026 Bank Rate Decision at a Glance

Measure	Latest Position
Bank Rate	3.75%
September 2026 Decision	Held unchanged
MPC Vote	6 voted to hold, 3 voted to increase
Proposed Higher Rate	4.00%
Latest UK CPI Inflation	3.1%
Bank of England Inflation Target	2%
Next Bank Rate Decision	5 November 2026

Why Did the Bank of England Keep Rates at 3.75%?

The Bank of England is currently balancing two competing pressures: higher inflation risks and economic conditions that could reduce inflation over time.

Inflation Has Risen to 3.1%

UK CPI inflation increased to 3.1% in August 2026, remaining above the Bank of England's 2% target. The Bank expects inflation to rise further over the coming quarters, particularly because of higher and volatile energy prices.

Energy Prices Remain a Major Risk

The Bank highlighted continuing uncertainty surrounding global energy prices. Higher energy costs can eventually feed through into household bills, transport costs and the prices businesses charge customers.

The Labour Market Remains Soft

Although economic activity has been slightly stronger than expected, softer labour-market conditions and higher borrowing costs can reduce spending and help bring inflationary pressure down over time.

What changed? The headline Bank Rate did not change, but the vote shows greater disagreement within the Monetary Policy Committee. Three members wanted an immediate increase to 4%.

What Does This Mean for Mortgages?

Mortgage Type	What the Decision Could Mean
Existing Fixed-Rate Mortgage	Your monthly payment would normally remain unchanged until your fixed period ends.
Tracker Mortgage	A tracker linked directly to Bank Rate would normally remain unchanged while Bank Rate stays at 3.75%, subject to your mortgage terms.
Standard Variable Rate	Your lender decides whether and when its variable rate changes.
New Fixed Mortgage	Rates can still move even though Bank Rate has not changed.
Remortgage	Available deals may change as lenders react to market interest-rate expectations and funding costs.

Why Can Mortgage Rates Change When Bank Rate Has Not?

This is an important point for home buyers. Fixed mortgage rates do not simply move up and down with the Bank of England Bank Rate. Lenders also consider factors including:

Swap rates
Financial-market expectations
Lender funding costs
Competition between mortgage lenders
Expected future Bank Rate movements
The lender's own pricing and risk strategy

This means a buyer should not assume that mortgage rates will remain unchanged simply because the Bank of England has held Bank Rate at 3.75%.

Buyer reminder: Do not base a property budget on the assumption that mortgage rates will fall soon. Work with the mortgage rate available to you and understand what the monthly payment would mean for your household budget.

What Does This Mean for First-Time Buyers?

For first-time buyers, the September decision does not immediately make borrowing cheaper. Affordability will continue to depend on the mortgage products available, income, deposit, credit profile and lender criteria. Before deciding how much property you can afford, consider:

Your available deposit
Your Mortgage Agreement in Principle
The actual mortgage rate offered by the lender
Monthly repayments
Mortgage product fees
Solicitor and conveyancing costs
Property survey costs
Stamp Duty where applicable
Moving and initial property costs
An emergency fund after completion

Important: The maximum amount a lender is willing to lend is not necessarily the amount you should spend on a property.

What Does This Mean if You Are Planning to Buy Soon?

If you are actively searching for a home, yesterday's decision should not necessarily determine whether you buy now or wait. Instead, focus on whether:

The property is right for your needs.
The purchase price is supported by comparable evidence.
Your mortgage payments are affordable.
You have enough money for the wider costs of buying.
You have considered what would happen if your mortgage costs were higher when your initial deal ends.

Trying to perfectly time both the property market and future interest-rate movements can be difficult. Your individual affordability and the quality and price of the property remain important considerations.

What Does This Mean for Home Movers?

If you already own a home and are planning to move, check whether your existing mortgage can be ported to your next property. Mortgage porting is not automatic. Your lender may reassess affordability, the new property and its current lending criteria. If you need additional borrowing, that extra borrowing may also be offered at a different interest rate from your existing mortgage.

What Does It Mean for Savers?

Bank Rate remaining at 3.75% does not guarantee that savings rates will remain unchanged. Banks and building societies set their own savings rates and can change them according to their funding requirements and market conditions. Savers should continue comparing:

Easy-access savings rates
Fixed-term savings accounts
Withdrawal restrictions
Introductory rates
Account limits and conditions
FSCS protection where applicable

What Should Buyers Watch Next?

The next Bank of England interest-rate decision is scheduled for 5 November 2026. Before then, buyers should pay attention not only to Bank Rate but also to:

UK inflation
Mortgage lender repricing
Swap rates and market expectations
Changes to affordability assessments
New mortgage products
Changes to their own financial circumstances

Quick Summary

Bank Rate remains at 3.75%.
The September decision was published on 17 September 2026.
The MPC voted 6–3 to hold rates.
Three members preferred an increase to 4%.
UK CPI inflation is currently 3.1%, above the 2% target.
Existing fixed mortgage payments normally remain unchanged during the fixed period.
New fixed mortgage rates can still rise or fall even when Bank Rate does not change.
The next Bank Rate decision is scheduled for 5 November 2026.

Simple takeaway for home buyers

The Bank of England has kept Bank Rate at 3.75%, but that does not mean mortgage rates will stay exactly where they are. If you are planning to buy a home, focus on the mortgage available to you, your complete buying budget and whether the property represents the right purchase for your circumstances rather than trying to predict the next interest-rate decision.

Official information: Bank of England September 2026 Monetary Policy decision