UK Interest Rates Guide
Where UK interest rates stand today, why the Bank of England moves them, and what a change in Bank Rate means for your mortgage, savings and borrowing.
See What a Rate Change Means for You
The Bank of England’s Bank Rate has stood at 3.75% since December 2025. Use the tool below to test how a different rate would change your mortgage repayments or the return on your savings.
Rate Impact Calculator
Compare your mortgage or savings at two different rates.
How it Works
Testing a rate change in four steps
Pick a Scenario
Choose whether you want to check mortgage repayments or the interest earned on your savings.
Enter Your Details
Add your balance, term and rates, or your savings balance, AER and tax position.
Try a Different Rate
Type in the rate you might be offered next, for example if Bank Rate rises by 0.25 percentage points.
Read the Difference
See the monthly and yearly change in what you pay or earn, with inflation taken into account for savings.
How Interest Rates Affect You
Bank Rate is the Bank of England’s main tool for keeping inflation at 2%. Its decisions ripple out to almost every financial product you hold.
🏠 Mortgages
Tracker and standard variable rate mortgages usually move soon after Bank Rate does, so your monthly payment can change quickly. Fixed rates stay put until your deal ends, but lenders price new fixed deals on where they expect rates to go, so those can shift before the Bank acts.
💷 Savings
Banks and building societies often pass on changes to variable savings rates, though not always in full or straight away. Compare accounts by AER, watch for temporary bonus rates, and consider a Cash ISA if your interest could exceed your Personal Savings Allowance.
💳 Loans & Credit
Most personal loans and car finance agreements are fixed at the outset, so a later rate change will not alter your repayments. The rate offered on a new loan or card, however, reflects the wider interest rate environment when you apply.
📈 Inflation
The Monetary Policy Committee raises rates to cool spending when inflation looks set to stay above target, and cuts them when it is low. UK CPI inflation was 3.1% in the year to August 2026, and three of nine members voted to raise Bank Rate at the September meeting.
Recent Bank Rate Decisions
The Monetary Policy Committee meets eight times a year. Here is how the latest decisions have gone, based on the Bank of England’s published summaries.
| Announced | Decision | Bank Rate | Notes |
|---|---|---|---|
| 17 Sep 2026 | Held | 3.75% | 6–3 vote. Three members preferred a rise to 4%. |
| 30 Jul 2026 | Held | 3.75% | 6–3 vote. Three members preferred a rise to 4%. |
| 18 Jun 2026 | Held | 3.75% | 7–2 vote. Two members preferred a rise to 4%. |
| 30 Apr 2026 | Held | 3.75% | 8–1 vote. One member preferred a rise to 4%. |
| 19 Mar 2026 | Held | 3.75% | Unanimous vote. |
| 18 Dec 2025 | Cut | 3.75% | Most recent change, down 0.25 points from 4.00%. |
| Aug 2023 | Peak | 5.25% | Top of the rate-rising cycle, followed by cuts totalling 1.5 points to December 2025. |
| Next decision | 5 November 2026. Inflation data is due on 21 October 2026. | ||
| Inflation (CPI) | 3.1% in the year to August 2026, up from 2.9% in July. The Bank’s target is 2%. | ||
UK Interest Rates FAQ
Answers to the most common questions about Bank Rate, inflation, mortgages and savings. Figures are correct as of 19 September 2026.
As of 19 September 2026, the Bank of England’s Bank Rate is 3.75%. The Monetary Policy Committee voted 6–3 to hold it at its September 2026 meeting, with three members preferring a rise to 4%. The last change was a cut from 4% to 3.75% in December 2025. The next decision is scheduled for 5 November 2026.
The Bank’s Monetary Policy Committee sets Bank Rate to keep inflation at the government’s 2% target. Raising rates makes borrowing more expensive and saving more rewarding, which tends to cool spending and bring inflation down. Cutting rates does the opposite. The committee meets eight times a year.
Tracker and standard variable rate mortgages usually change soon after Bank Rate moves, so your monthly payment can rise or fall. Fixed-rate mortgages stay the same until the deal ends, but new fixed rates are priced by lenders using expectations of future rates, so they can change before the Bank moves. When a fixed deal ends you will typically move to a rate based on the market at that time.
Banks and building societies often adjust variable savings rates when Bank Rate changes, though not always by the full amount or straight away. Fixed-rate savings bonds lock in a rate for a set term. Compare accounts using the AER, which shows the annual return including compounding, and check whether a rate includes a temporary bonus.
Bank Rate is the interest rate the Bank of England sets, and it influences the cost of borrowing and the return on saving. Inflation, measured by the Consumer Prices Index (CPI), is how quickly prices are rising. UK CPI inflation was 3.1% in the year to August 2026, above the 2% target, which is why some policymakers have voted to raise rates. If your savings rate is below inflation, your money buys less over time.