UK mortgage market: Bank Rate, approvals and mortgage rates
Bank Rate was held at 3.75% in September; the cited two-year fixed average was 5.62% in July. Compare dated UK mortgage measures.
On this page
This page tracks dated measures that shape UK mortgage costs. The Bank of England held Bank Rate at 3.75% on 17 September 2026. The cited average two-year fixed mortgage rate was 5.62% on 29 July 2026. These measures have different dates and show why Bank Rate alone does not tell you what a mortgage offer will cost.
Bank Rate and mortgage approvals are Bank of England data. Advertised mortgage rates are Moneyfacts averages. Each figure below identifies its source and observation date.
The numbers right now
| Measure | Latest | As at | Source |
|---|---|---|---|
| Bank Rate | 3.75% | Held 17 Sep 2026 | Bank of England |
| Mortgage approvals (house purchase) | 54,900 | August 2026 | Bank of England |
| Average two-year fixed rate | 5.62% | 29 Jul 2026 | Moneyfacts |
| Average five-year fixed rate | 5.66% | 29 Jul 2026 | Moneyfacts |
| Effective rate on new mortgages | 4.60% | August 2026 | Bank of England |
Bank Rate
Bank Rate is the interest rate the Bank of England pays to commercial banks, and the anchor for borrowing costs across the economy. It has been 3.75% since 18 December 2025, when the Bank cut it by 0.25 percentage points from 4.00%.
Bank Rate peaked at 5.25% in August 2023. The Bank cut it in stages from 2024 onward, most recently in December 2025, and has held it at 3.75% at every meeting since.
| Decision announced | Decision | Bank Rate after |
|---|---|---|
| 18 Dec 2025 | Cut by 0.25 points | 3.75% |
| 5 Feb 2026 | Held (5-4 vote) | 3.75% |
| 19 Mar 2026 | Held | 3.75% |
| 30 Apr 2026 | Held | 3.75% |
| 18 Jun 2026 | Held | 3.75% |
| 30 Jul 2026 | Held (6-3 vote) | 3.75% |
| 17 Sep 2026 | Held (6-3 vote) | 3.75% |
Mortgage approvals
In the August 2026 Money and Credit release, house-purchase approvals were 54,900, down from a revised 55,900 in July. Remortgage approvals were 34,000, down from 34,600 in July. Net mortgage borrowing was £4.4 billion in August versus £4.1 billion in July.
| Month | House purchase approvals | Remortgage approvals |
|---|---|---|
| July 2026 (revised) | 55,900 | 34,600 |
| August 2026 | 54,900 | 34,000 |
Mortgage rates in the last cited snapshot
There are two ways to measure mortgage rates, and they tell different stories. The advertised averages below are rates offered to new borrowers. The effective rate, further down, describes loans drawn in a given month.
| Product | Average rate | Rate type |
|---|---|---|
| Two-year fixed | 5.62% | Fixed for the deal term |
| Five-year fixed | 5.66% | Fixed for the deal term |
| Two-year tracker | 4.51% | Tracks a reference rate |
The cited July rate snapshot shows a gap between the average two-year fix of 5.62% and Bank Rate, which remained 3.75% after the September decision. These figures were recorded on different dates, so the gap is illustrative, not a current quote.
The Bank of England’s effective rate on newly drawn mortgages rose to 4.60% in August 2026, from 4.45% in July. The rate on the outstanding stock of mortgages rose to 4.00% from 3.97%. These figures describe loans actually drawn and the existing mortgage stock; they are not current advertised offers.
Sources and next update
The next Bank of England Money and Credit release, covering September 2026, is due on 29 October 2026. The next Bank Rate decision is due on 5 November 2026.
Source: Bank of England - September 2026 MPC decision and minutes — Bank Rate held at 3.75% by a 6–3 vote.
Source: Bank of England - August 2023 MPC decision and minutes — Bank Rate increased to 5.25% in August 2023.
Source: Bank of England - Monetary Policy Committee dates — 2026 MPC meeting dates.
Source: Bank of England - Money and Credit, August 2026 — Released 29 September 2026.
Source: Bank of England - Money and Credit, June 2026 — Released 29 July 2026.
Source: Moneyfacts - mortgage-rate averages — Mortgage-rate averages as at 29 July 2026.
Fixed or tracker mortgage: which suits you?Use these numbers to decide whether to fix or track.Remortgaging: how to avoid the SVRWhat to do when your fixed deal ends.Mortgage repayment calculatorSee what a 5.62% rate means in monthly payments.UK house price indices hubThe other half of the picture: what homes are worth.
Sources
- Bank of England - September 2026 MPC decision and minutes - Bank Rate held at 3.75% by a 6–3 vote.
- Bank of England - August 2023 MPC decision and minutes - Bank Rate increased to 5.25% in August 2023.
- Bank of England - Monetary Policy Committee dates - 2026 MPC meeting dates.
- Bank of England - Money and Credit, August 2026 - Released 29 September 2026.
- Bank of England - Money and Credit, June 2026 - Released 29 July 2026.
- Moneyfacts - mortgage-rate averages - Mortgage-rate averages as at 29 July 2026.