Bank Rate Held at 3.75%: What UK Buyers and Landlords Should Watch Next
The Bank of England kept Bank Rate unchanged in September, but the split vote and rising inflation leave borrowers facing uncertainty.
This guide sets out what was decided and what buyers and landlords should check.
What the Bank Decided
On 17 September 2026 the Bank of England’s Monetary Policy Committee voted 6 to 3 to hold Bank Rate at 3.75%. Three members, Megan Greene, Catherine Mann and Huw Pill, voted for a rise to 4%. Reports describe it as the sixth consecutive hold since the cut to 3.75% in December 2025.
Why a Hold Is Not Good News for Everyone
UK inflation rose to 3.1% in August, a five-month high, which reports attribute largely to higher energy prices. The committee judged risks to inflation to be tilted to the upside. Fixed mortgage rates are priced from market expectations rather than Bank Rate alone, so reports note that lenders have already been raising them.
Reports of market pricing suggest a quarter-point rise at the next meeting, due 5 November, is the favourite. That is a market expectation, not a decision.
What to Check
- Buyers: ask a broker to price your mortgage at today’s rates and at a rate one point higher.
- Fixed deals: mortgage offers can often be held for a limited period, so ask what applies to yours.
- Landlords: test whether rent covers the mortgage interest at a higher rate, using a realistic stress test.
- Overseas buyers: remember that sterling mortgage costs and the exchange rate move independently.
The Takeaway
Plan around a range of rates, not a single forecast. For the latest mortgage picture read our guide to UK mortgage rates in September 2026 and our note on buy-to-let mortgage interest relief, or speak to Banke. Figures come from published coverage of the decision checked in October 2026; this is general information, not financial advice.