UK mortgage rates in 2026: Bank Rate held at 3.75%

The Bank of England held Bank Rate at 3.75% on 17 September 2026 and says mortgage rates for households are higher than before the conflict in the Middle East began. That is the starting point for anyone checking UK mortgage rates: the Bank’s published material does not show a clear fall in what lenders charge, and the policy rate that anchors those deals did not move.

The Bank’s Monetary Policy Committee said inflation has risen to 3.1% and that it expects it to go higher as dearer energy works through the economy. Governor Andrew Bailey said: “The longer this volatility persists, the bigger the impact it will have on inflation, and the more likely it is we will need to raise Bank Rate to ensure that inflation falls back to our 2% target.” For borrowers, that is a warning about direction of travel rather than a promise of relief.

The only dip in the sources is older. The Bank’s Money and Credit statistics for January 2026 showed the effective interest rate on newly drawn mortgages falling to 4.09% from 4.15% in December. The effective rate is the actual interest paid, and that figure is a snapshot of one month, not a measure of the deals on offer now.

Current mortgage interest rates in the UK: who pays more

The Bank said mortgage rates for households and borrowing costs for firms are higher than before the conflict, which is making people more cautious about spending. The government made a similar point in its Mortgage Charter 2026, saying families are worried about rising mortgage rates, “particularly those coming to the end of a fixed rate deal”. Those borrowers feel any increase most sharply, because their new rate replaces an old one in a single step.

The Bank’s January figures show why. The average effective rate on all outstanding mortgages was 3.90%, while newly drawn mortgages averaged 4.09%. On average, then, someone taking a new deal paid more than the typical existing borrower. Because Bank Rate was held, anyone whose rate follows it directly sees no change from this decision.

The Bank also reported 60,000 net mortgage approvals for house purchase in January, down from 61,000 in December, and 38,100 approvals for remortgaging with a different lender, down from 38,400. A year ago, Bank Rate stood at 4.00%, having been cut to that level on 7 August 2025. It is now 0.25 percentage points lower, yet the Bank says mortgage rates have still risen since the conflict began.

How much are mortgages costing UK borrowers: a worked example

The sources do not give a rate for every deal on the market, so the figures below are our own illustration, not offers. We have taken a £200,000 repayment mortgage over 25 years and started from the 4.09% average effective rate on new loans in January. We then added one and two percentage points to show what a higher rate does to the monthly bill.

A rise from 4.09% to 5.09% therefore adds about £114 a month, or roughly £1,370 a year. The second percentage point costs slightly more than the first, about £120 a month, because the interest is charged on a balance that shrinks more slowly. Your own figure will differ with your balance, term and any fees, so treat the table as a guide to scale rather than a quote.

Finding the best mortgage rates available in the UK: what to do now

Start with the date your current deal ends. Lenders can tell you, and it sets how long you have to act. Then ask your lender what rate it would offer when the deal expires and what help is available if payments become difficult. The government said on 26 March 2026 that the Chancellor met lenders representing 75% of the market, and that lenders have reaffirmed their commitment to the Mortgage Charter, which gives borrowers extra flexibility over a short period.

Next, run your own numbers. Using the table above as a template, work out what your payment would be at one and two points higher than your current rate, and check you could cover it. Then compare deals from several lenders, looking at the total cost including fees, not just the headline rate. The sources do not identify which deals are cheapest, so a comparison of the whole market is the only reliable way to find the best mortgage rates available in the UK for your circumstances.

Finally, mark Thursday 5 November 2026 in your diary. That is when the Bank will announce its next rate decision, and the inflation figures and energy prices between now and then will shape it.

Your questions answered

What are the current interest rates for mortgages in the UK?

The Bank of England’s Bank Rate is 3.75%. Mortgage rates are set by lenders and vary by deal, and the sources we have do not give a current average. The latest figures in them are the Bank’s January 2026 effective rates: 4.09% on newly drawn mortgages and 3.90% across all outstanding mortgages.

Will interest rates go down?

The Bank cut Bank Rate from 5.25% in August 2024 to 3.75% in December 2025, but it has since said the Middle East conflict has pushed up energy prices and inflation. It says a longer period of volatility makes a rise in Bank Rate more likely. It has not said when, or whether, cuts will resume.

How high will mortgage rates go in 2026?

Nobody can say from the sources. The Bank describes the situation as “difficult to predict” and says it is monitoring it very closely. Inflation moved between 2.6% and 3.3% from March to August this year, and the path of energy prices, which the Bank says it cannot control, will largely decide what happens next.