Are UK interest rates going up or down in 2026?UK interest rates are expected to fall gradually through 2026. The Bank of England base rate stands at 4.25% in April 2026, having already been cut from its peak of 5.25% in August 2023. The Monetary Policy Committee (MPC) is expected to continue cutting through 2026, with most forecasters projecting the rate to reach 3.75% to 4.00% by the end of the year — barring unexpected inflation or economic shocks. Bank of England base rate: 4.25% (April 2026). Consensus forecast: 3.75 to 4.00% by end 2026. Rates are falling — but slowly and not back to pre-2022 levels. Bank of England rate history and forecast
What does this mean for mortgages?
What does this mean for savings?
What could push rates higher instead?
Verdict Rates falling — but gradually and with uncertainty The direction is down but the pace is slow. For mortgage holders, a tracker offers the most direct benefit from future cuts. For savers, locking into a competitive fixed rate now may be better than waiting for easy-access rates to fall further. Frequently asked questionsWhat is the Bank of England base rate today? The Bank of England base rate is 4.25% as of April 2026. The MPC meets approximately every 6 weeks to review the rate. Will mortgage rates fall significantly in 2026? Mortgage rates are expected to fall modestly — perhaps 0.3 to 0.5% through the year. Significant falls (below 3.5%) are unlikely without a sharper-than-expected base rate reduction. Will savings rates go down in 2026? Yes. Easy-access savings rates are expected to fall further as the base rate drops. Fixed-rate bonds offer some protection — locking in now preserves your current rate for the fixed term. When is the next Bank of England rate decision? The MPC meets approximately every 6 weeks. Decisions are published at midday on the day of the announcement. Check bankofengland.co.uk for the schedule and latest decisions. |
Are Interest Rates Going Up or Down in the UK? 2026
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