25 September 2026
Bank of England Holds Rates: What Happens Next for Homeowners?
by Dee Quealy
The Bank of England has announced that interest rates will remain at 3.75%, leaving many homeowners and prospective buyers wondering what this means for their mortgage payments.
At its latest meeting on 17 September 2026, the Bank of England voted to keep the base rate unchanged. However, while the decision provides some stability, it doesn't necessarily mean mortgage rates will stay the same.
With lenders reviewing their mortgage deals, inflation remaining above target and uncertainty surrounding future interest rate decisions, understanding your mortgage options is more important than ever.
Whether you're approaching the end of your current mortgage deal, looking to buy your first home or considering moving, the team at Quealy & Co Financial Services Ltd. is here to help you understand what these changes could mean for you.
Why has the Bank of England held interest rates?
The Bank of England uses interest rates to help manage inflation, which is the rate at which the prices of everyday goods and services are increasing.
When inflation is high, keeping interest rates elevated can encourage people to spend less and save more, helping to slow price increases. However, higher interest rates also make borrowing more expensive, which can put additional pressure on households, businesses and the wider economy.
According to the latest figures from the Office for National Statistics, UK inflation increased to 3.1% in the 12 months to August 2026, up from 2.9% in July. This remains above the Bank of England's 2% target.
Rising energy costs and ongoing uncertainty surrounding the conflict in the Middle East have added to concerns that inflation could increase further over the coming months.
The Bank of England therefore faces a difficult balancing act. It needs to bring inflation under control without putting unnecessary pressure on economic growth, employment and household finances.
For mortgage borrowers, this means that while the base rate has remained unchanged, the outlook for mortgage rates remains uncertain.
What does this mean for your mortgage?
The impact of the Bank of England's latest decision will depend on the type of mortgage you currently have and whether you're approaching the end of your existing deal.
If you're on a fixed-rate mortgage
If you're currently on a fixed-rate mortgage, your interest rate and monthly repayments will remain the same until your fixed-rate period ends, provided you keep to the terms of your mortgage.
However, if your current deal is coming to an end, you may find that the mortgage rates available today are higher than those you secured previously.
Several major UK lenders have recently increased their fixed-rate mortgage pricing in response to rising borrowing costs and concerns about future inflation.
This means that even though the Bank of England has decided to hold the base rate, borrowers looking for a new fixed-rate mortgage could still face higher monthly repayments.
At Quealy & Co Financial Services Ltd., we understand that this can be worrying, particularly if you've become accustomed to a lower mortgage rate. Our advice is to review your options well before your current deal expires, giving yourself time to understand what your future repayments could look like and explore the mortgage products available to you.
If you're on a tracker or variable-rate mortgage
If you have a tracker mortgage linked directly to the Bank of England base rate, the latest decision means your interest rate should remain unchanged, assuming there are no other contractual changes affecting your deal.
However, if the base rate increases or decreases in the future, your mortgage payments could change accordingly.
For borrowers on a standard variable rate (SVR), the situation is slightly different. Your lender sets this rate, and it can change independently of the Bank of England's decisions.
If you're currently on a variable-rate mortgage, reviewing your options could help you understand whether staying on your existing deal or switching to a fixed rate would better suit your circumstances.
Why are mortgage rates rising if the base rate hasn't changed?
It's a common misconception that mortgage rates only change when the Bank of England adjusts its base rate.
In reality, fixed-rate mortgage pricing is influenced by several factors, including the financial markets' expectations of where interest rates might go in the future.
One of these factors is something called a swap rate. Swap rates help determine how much it costs lenders to provide fixed-rate mortgages. When financial markets anticipate higher interest rates, swap rates can increase, making it more expensive for lenders to offer fixed-rate deals.
Lenders may then pass these additional costs on to mortgage borrowers through higher interest rates. This explains why mortgage rates can rise even when the Bank of England decides to leave the base rate unchanged.
At Quealy & Co Financial Services Ltd., our message to homeowners is simple: A decision to hold the base rate doesn't mean mortgage deals will stand still. If you're approaching the end of your current deal, it's worth reviewing your options now rather than relying on rates remaining where they are.
Of course, mortgage rates can move in either direction, and nobody can say with certainty what will happen over the coming months. The important thing is to understand your options and make an informed decision based on your own financial circumstances.
Is your mortgage deal coming to an end? Here's what you should do.
If your current mortgage deal is due to expire within the next six months, now could be a sensible time to start reviewing your options.
Leaving things until the last minute could mean missing out on a suitable deal or finding yourself moved onto your lender's standard variable rate, which may be more expensive than other available products.
The good news is that many lenders allow you to arrange a new mortgage deal several months before your current one expires. This gives you time to compare your options and make arrangements for your next mortgage.
At Quealy & Co Financial Services Ltd., we can help you review your existing mortgage, explore the products available across the market and understand what your future repayments could look like.
Depending on your lender and the terms of your new mortgage offer, you may also have the opportunity to switch to a more suitable deal if rates fall before your new mortgage begins. However, this isn't guaranteed, and any fees or restrictions would need to be considered.
"You don't have to wait until your current mortgage deal ends to start planning your next move. Getting advice early gives you time to explore your options, understand the potential costs and make a decision that works for you."
Should you choose a two-year or five-year fixed-rate mortgage?
With uncertainty surrounding future interest rates, you may be wondering whether it's better to secure a mortgage rate for two years, five years or somewhere in between. The answer will depend on your individual circumstances, financial priorities and plans for the future.
A shorter fixed-rate mortgage may appeal to borrowers who want the opportunity to review their mortgage sooner. However, there is a risk that rates could be higher when their deal ends.
A longer fixed-rate mortgage can offer greater certainty over monthly repayments for an extended period, making it easier to plan your household finances. However, you could miss out on lower rates if they become available during your fixed-rate period.
It's also important to consider any early repayment charges, particularly if you're thinking about moving home or making changes to your mortgage in the coming years.
There is no single mortgage product that will suit everyone. At Quealy & Co Financial Services Ltd., we take the time to understand your circumstances, discuss your future plans and explain the advantages and disadvantages of the different options available to you.
Looking to buy a home? Don't let interest rate uncertainty put your plans on hold.
If you're a first-time buyer or thinking about moving home, you may be wondering whether you should wait for mortgage rates to fall before taking your next step. However, trying to predict the perfect time to buy can be difficult.
Interest rates are just one of the factors to consider when purchasing a property. Your deposit, income, monthly budget, credit history and the property you want to buy will all influence the mortgage options available to you.
Rather than making a decision based solely on predictions about future interest rates, it's worth understanding what you could comfortably afford at today's mortgage rates.
Our mortgage advisers can help you explore your borrowing options, understand the costs involved and identify mortgage products suited to your individual needs.
Whether you're buying your first home in Sittingbourne, moving to a larger property in Faversham or looking to remortgage your existing home in Kent, we're here to help you navigate the mortgage process with confidence.
Find the right mortgage for you with Quealy & Co Financial Services Ltd.
With mortgage rates changing and uncertainty surrounding future interest rate decisions, having access to professional mortgage advice can make all the difference.
At Quealy & Co Financial Services Ltd., we have access to mortgage products from across the whole of the market, including deals that may not be available directly from high-street lenders.
We'll take the time to understand your individual circumstances, explain your options clearly and help you find a suitable mortgage for your needs.
Whether you're a first-time buyer, moving home, remortgaging or reviewing your buy-to-let mortgage, our experienced team is here to support you every step of the way.
Is your mortgage deal coming to an end, or are you planning your next move? Don't leave your mortgage arrangements until the last minute. Get in touch with Quealy & Co Financial Services Ltd. for bespoke mortgage advice tailored to your personal circumstances.
Let's talk about your mortgage
Speak to our friendly mortgage team today to discuss your options.
01795 505761
Your home may be repossessed if you do not keep up repayments on your mortgage.
Quealy & Co Financial Services Ltd. is authorised and regulated by the Financial Conduct Authority No. 919693. Most Buy to Let mortgages are not regulated by the Financial Conduct Authority and will not benefit from the same regulatory protection as residential mortgages.
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