Key Takeaway

The Bank of England has held the base rate at 3.75% for a second consecutive meeting in July 2026, signalling caution over inflation. If you are on a tracker or standard variable rate (SVR) mortgage, your payments will stay the same for now. Those on fixed-rate deals coming to an end should compare remortgage rates urgently, as new deals remain considerably higher than pre-2022 levels. Savers will continue to see relatively attractive returns, though competition among banks may ease slightly.

What Happened

The Bank of England’s Monetary Policy Committee voted to keep the base rate at 3.75% at its July 2026 meeting, marking the second month in a row without a change. According to the Bank of England, the decision reflects persistent inflation pressures and the committee’s commitment to returning inflation to the 2% target sustainably. The base rate influences the interest rates that lenders charge on mortgages and pay on savings accounts.

What It Means for Your Mortgage

If You Are on a Tracker or Standard Variable Rate

Tracker mortgages move directly in line with the Bank of England base rate, and standard variable rates (SVR) typically follow base rate changes, though lenders set their own SVR. With the base rate unchanged, your monthly repayments will stay the same. However, be aware that you are exposed to future rate rises: if the base rate increases, your payments will go up.

If You Are on a Fixed-Rate Deal

Your monthly repayments remain locked at the agreed rate until your deal period ends. However, if your fixed term is due to expire in the coming months, now is the time to act. According to MoneyHelper, you can usually secure a new rate up to six months before your current deal ends without penalty. New fixed-rate products in July 2026 are typically priced between 4% and 6%, depending on your loan-to-value (LTV) and the deal length. Compare offers from multiple lenders or speak to a mortgage broker to find the best rate for your circumstances.

If Your Deal Has Already Ended

You have likely reverted to your lender’s SVR, which is almost always significantly higher than a new fixed or tracker deal. The average SVR in mid-2026 sits around 7% to 8%. Remortgaging to a new fixed or tracker rate will usually save you hundreds of pounds per month. Check for any early repayment charges (ERC) if you are still within a deal period, and factor in arrangement fees when comparing products.

What It Means for Savings

The unchanged base rate is positive news for savers in the short term. Many easy-access and fixed-term savings accounts continue to offer rates above 4%, a significant improvement compared to the near-zero rates of 2020 and 2021. However, competition among banks may ease if the base rate stays flat for an extended period, which could lead to lower savings rates over time. According to MoneySavingExpert, it is worth shopping around regularly and switching to accounts offering the best rates, as loyalty rarely pays in the savings market.

Read also: Mortgage and Remortgage Interest Rates Today in the UK: Rates Falling Again

What to Do Next

If you are on a tracker or SVR, review your budget to ensure you can absorb a potential rate rise in future months. If your fixed-rate deal is ending soon, start comparing remortgage offers now. For savers, keep an eye on best-buy tables and consider locking in a competitive fixed-rate bond if you do not need immediate access to your money. Always confirm current rates and product terms with an FCA-authorised lender or mortgage adviser before making any decision.

Important Information

This information is general educational guidance and is not regulated mortgage advice or personalised financial, lending, or legal advice. Refisage is not authorised by the Financial Conduct Authority (FCA). Rates, eligibility, fees, and product availability vary by lender and your personal circumstances. Stamp duty and government schemes differ across England, Scotland, Wales, and Northern Ireland. Consider speaking to an FCA-authorised mortgage adviser before deciding.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Rates and deals mentioned are current as of July 2026; rates change frequently, so verify current terms with an FCA-authorised lender or adviser before deciding.