Bank of England Holds the Base Rate at 3.75%
The Bank of England's Monetary Policy Committee (MPC) has voted to hold the base rate at 3.75% at its meeting on 18 June 2026, leaving Bank Rate unchanged for another month.
By Ian Moore, Director
Bank of England Holds the Base Rate at 3.75%: What It Means for Your Mortgage
The Bank of England's Monetary Policy Committee (MPC) has voted to hold the base rate at 3.75% at its meeting on 18 June 2026, leaving Bank Rate unchanged for another month. The decision was widely expected, with economists almost unanimously predicting a hold ahead of the announcement.
It marks another pause in a picture that has shifted considerably since the start of the year. Bank Rate has sat at 3.75% since the final cut of the easing cycle in late 2025, and the rate cuts many had pencilled in for 2026 have, for now, been put on ice.
Why has the Bank held rates?
The MPC is walking a tightrope. Inflation has cooled from its earlier peaks but remains above the Bank's 2% target, with CPI running at around 2.8%. At the same time, the conflict in the Middle East has pushed up global energy prices, creating fresh uncertainty about where inflation goes next. Against that backdrop, the Bank has opted for a "wait and see" approach rather than risk cutting too soon and having to reverse course later in the year.
Economic growth, meanwhile, remains weak, which is part of the reason the Bank is in no rush to raise rates either. The result is a hold — and a committee that remains divided about what should happen next.
What does this mean for you?
The impact of a hold depends entirely on the type of mortgage you have.
If you're on a fixed rate, nothing changes today. Your rate and your monthly payments stay exactly as they are until your current deal ends. The decision worth thinking about is what happens when that deal expires — and if you're within six months of the end, now is a sensible time to start planning.
If you're on a tracker or your lender's standard variable rate (SVR), your payments are unaffected by this decision, as Bank Rate has not moved. You'll only see a change when the base rate itself does.
If you're coming to the end of a deal or looking to remortgage, this is where it gets interesting. Fixed-rate mortgages are not priced off the base rate directly — they're driven by swap rates, which reflect where the market expects rates to head in the future. Those swap rates have eased recently, and several major lenders have been trimming their fixed rates through June as a result. Pricing is moving frequently, so a good deal today may not be there next week.
If you're a buy-to-let landlord, tracker products respond directly to Bank Rate and so are unchanged, while fixed-rate pricing from specialist BTL lenders has remained competitive on the back of softer swaps. For portfolio landlords in particular, it's worth reviewing how a hold — and the possibility of a move later in the year — affects your overall position.
What happens next?
This is where the experts disagree. While many forecasters expect rates to stay at 3.75% for the rest of 2026, a meaningful number believe at least one rise — potentially to 4% — is possible before the year is out, while only a handful expect a cut. Much will depend on how the energy situation develops and whether inflation continues its slow path back towards target.
For borrowers, the key takeaway is this: the headline number is only half the story. The Bank's tone and the path the market expects rates to take often matter more for mortgage pricing than the decision itself. With lenders repricing regularly, securing the right deal when it appears can make a real difference to your monthly payments and the total cost of your mortgage — and most fixed-rate offers can still be switched if rates fall further before you complete.
Thinking about your next move?
Whether your current deal is ending soon, you're buying your first home, or you're reviewing a buy-to-let portfolio, the right advice now can save you money and uncertainty later. As an independent mortgage brokerage based in Prestatyn, North Wales, IM Mortgage Consultancy Limited has access to a wide range of lenders and can help you find the deal that's right for your circumstances.
Get in touch to review your options — we're here to help you make the right decision with confidence.
Your home may be repossessed if you do not keep up repayments on your mortgage. IM Mortgage Consultancy Limited is authorised and regulated by the Financial Conduct Authority. This article is for general information only and does not constitute financial advice.