BoE keeps mortgage base rate at same level

August 6, 2026 by Brendan O'Neill

Rates

The Monetary Policy Committee for the Bank of England (BoE) has voted to keep the mortgage base rate at the same level.

It will remain on 3.75% after six members of the committee voted to hold the rate at that level. Three of the committee members wanted to raise it by 0.25%, which may still happen later in the year. The BoE has stated that the impact of rising energy costs due to the war in Iran could lead to a spike in inflation again before the end of 2026.

The decision to hold firm on the base rate has mostly been welcomed by the mortgage industry. Ben Thompson from the Mortgage Advice Bureau said it offered borrowers a little respite given how turbulent things have been. He then added it would keep product prices fairly even for first-time buyers.

Speaking to Mortgage Soup, he went on to say:

“But deposit requirements and criteria still vary hugely from lender to lender, so finding the right match matters just as much as the rate itself.”

Thompson also addressed those who are looking to remortgage. He pointed out they should not be complacent in the wake of the base rate decision. Thompson argued that it is swap rates that influence mortgage lenders when they are setting their fixed rates, so anyone with six months or less left on a deal should be starting to shop around now.

This shows how both first-time buyers and remortgage customers can benefit from the advice of someone who has done the CeMAP training course.