Bank of England base rate and your mortgage
Last reviewed: 30 June 2026
The Bank of England base rate is 3.75%, held on 18 June 2026, with the next decision due on 30 July 2026. The base rate drives tracker and standard variable mortgage rates, so those payments move with it. Fixed rates are different: they are priced off swap rates, so they can move even when the base rate is held, and an existing fix stays locked for its term whatever the base rate does.
The latest decision
The Bank of England base rate is 3.75%, held on 18 June 2026[Bank of England]. The Monetary Policy Committee next meets on 30 July 2026. The base rate is the Bank's main tool for managing inflation, and it sets the reference point that tracker and variable mortgage rates follow.
What it means for each mortgage type
- Tracker: follows the base rate plus a margin, so your payment moves when the base rate moves.
- Standard variable rate: set by the lender and loosely tied to the base rate, usually the most expensive option.
- Fixed rate: locked for the term, so a base-rate change does not affect your current payment. New fixes follow swap rates.
Why fixes seem to ignore the base rate
Fixed-rate pricing tracks swap rates, which move on expectations of future base-rate decisions rather than the level today. So lenders often adjust fixed deals before a Bank meeting, and a fix can be priced above or below the current 3.75% base rate. The full mechanism is on swap rate vs base rate.
Common questions
What is the base rate now?
The Bank of England base rate is 3.75%. It was held at the meeting on 18 June 2026, and the next decision is scheduled for 30 July 2026. The base rate is the rate the Bank charges other banks, and it filters through to the mortgage market.
Does the base rate change my mortgage payment?
It depends on your product. If you are on a tracker or your lender's standard variable rate, a base-rate change usually feeds through to your payment. If you are on a fixed rate, your payment does not change during the fixed period regardless of the base rate.
Why did my fixed rate not follow the base rate?
Because fixed mortgage rates are priced off swap rates, not the base rate. Swaps reflect where markets expect rates to go, so new fixed deals can move up or down even when the base rate is held. Existing fixes are locked for their term either way.
What happens at the next decision?
The Bank's Monetary Policy Committee meets on 30 July 2026 and will decide whether to hold, cut or raise the base rate. Trackers and variable rates would respond to a change; fixed-rate pricing tends to move ahead of the decision as markets anticipate it.
Founder, MortgageExplained, MortgageExplained
Adam spent nearly a decade as a mortgage adviser at Just Mortgages, with further experience in commercial finance. He is CeMAP and CF qualified. He built MortgageExplained to do one thing well: explain mortgages in plain English, then introduce you to a regulated broker when you are ready. Every page is written and reviewed by Adam.
Last reviewed: 30 June 2026