The Bank of England Holds Base Rate AGAIN at 3.75 Percent

The Bank of England carried on with its cautious approach to base rate changes in its September 2026 meeting. The Bank’s Monetary Policy Committee (MPC) voted to hold the rate at 3.75% for the sixth time in a row. With inflation at 3.1%, above the government’s 2% target at the time, and concerns about the ongoing conflict in the Middle East and energy price rises, maybe it’s not surprising that the Bank decided to hold the base rate once again. We take a look at what this decision means, the impact on homebuyers, and what the rest of the year might bring for base rate changes. 

What Does Another Vote To Hold Mean For The Base Rate? 

On September 17, 2026, the MPC voted six to three to hold the base rate at 3.75%. What’s interesting, though, is that three members voted to increase the rate by 0.25% to 4%. This is up from the two votes to increase in June and could be a sign of shifting attitudes if inflation stays high into the winter months. 

This was the MPC’s sixth meeting of the year. They meet eight times per year to vote on whether the base rate should be held, raised, or dropped. During meetings, they think about the knock-on effect of a base rate change on inflation as they try to keep it as close to the 2% target as possible. With three votes to raise it this time, it could be an indication of what might happen later in the year. 

Why Was The Base Rate Held Again? 

So, why did the Bank of England’s MPC vote to hold the base rate for a sixth time? At the start of 2026, people were optimistic about the base rate being lowered over the course of the year, but there are a lot of external factors now at play that have meant the Bank of England has not been able to lower the base rate further: 

• Rising inflation 
• Energy and fuel price increases 
• The ongoing war in the Middle East 
• Higher rates of unemployment 
• Uncertainty about the wider global economy 

What’s The Impact On Mortgages? 

The base rate is the rate the Bank of England charges other lenders and banks to borrow money so they can offer services like mortgages to customers. It can have an impact on the swap rates for lenders who are buying money to be able to provide their services, and then on the interest rates that they eventually offer to customers on new fixed-rate mortgage deals; it can affect those on variable and tracker mortgages too. 

It’s understandable that prospective buyers might feel nervous about applying for a mortgage at this time, but there are lots of factors that go into the rate you could be offered. Deposit, earnings, and other financial commitments are also considered by lenders. 

This is why turning to a specialist broker like Doctors Mortgages Online can make shopping around for a deal much easier, as we have access to the full market. We can also help you understand your options and decide whether a tracker or fixed mortgage is right for you. The house buying process takes many months, and you can always switch to a lower rate if one becomes available up to exchange of contracts. 

Our Predictions For The November Meeting 

The next base rate meeting will happen on November 5, 2026. While it’s impossible to predict what decision will be made for certain, we wouldn’t be surprised if a rise to 4% happens in an attempt to control inflation. We also expect this to continue into the new year. Whatever happens, you want to know that you’re getting the best mortgage deal available to you, so get in touch with our friendly team today to discuss your options.