Money Guides
⏱ 3 min read
📅 Updated Apr 2026
Are Interest Rates Going Up or Down in the UK? 2026
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| Date | Base rate | Direction |
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| August 2023 | 5.25% (peak) | Hold | | August 2024 | 5.00% | First cut | | November 2024 | 4.75% | Cut | | February 2025 | 4.50% | Cut | | May 2025 | 4.25% | Cut | | April 2026 (current) | 4.25% | Hold | | End 2026 (forecast) | 3.75 to 4.00% | Expected further cuts |
What does this mean for mortgages?- Tracker mortgages — will benefit directly as the base rate falls; each 0.25% cut reduces payments on a £200,000 tracker by approximately £40 per month
- Fixed rate mortgages — already pricing in expected cuts; rates have fallen from 2023 peaks but further significant falls are unlikely without faster-than-expected base rate cuts
- SVR borrowers — lenders typically pass on base rate cuts to SVR customers, though not always in full
What does this mean for savings?- Easy-access savings rates have already fallen from 2023 highs (5.1 to 5.5%) toward 4.5 to 5.0%
- Fixed-rate bonds are pricing in future cuts — locking in now at 4.8 to 5.0% for 1 to 2 years may be worthwhile if rates fall further
- Cash ISA rates are following savings rates down — act now if you want to lock in a competitive rate
What could push rates higher instead?- A sustained resurgence in UK inflation above 3 to 4%
- A significant weakening of sterling requiring rate support
- Escalation of global trade disruption increasing import costs
- Stronger-than-expected wage growth reigniting services inflation
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. |
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Editorial Disclaimer
The content on Kaeltripton.com is for informational and educational purposes only and does not constitute financial, investment, tax, legal or regulatory advice. Kaeltripton.com is not authorised or regulated by the Financial Conduct Authority (FCA) and is not a financial adviser, mortgage broker, insurance intermediary or investment firm. Nothing on this site should be construed as a personal recommendation. Rates, figures and product details are indicative only, subject to change without notice, and should always be verified directly with the relevant provider, HMRC, the FCA register, the Bank of England, Ofgem or other appropriate authority before any financial decision is made. Past performance is not a reliable indicator of future results. If you require regulated financial advice, please consult a qualified adviser authorised by the FCA.
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Chandraketu Tripathi
Finance Editor · Kaeltripton.com
Chandraketu (CK) Tripathi, founder and lead editor of Kael Tripton. 22 years in finance and marketing across 23 markets. Writes on UK personal finance, tax, mortgages, insurance, energy, and investing. Sources: HMRC, FCA, Ofgem, BoE, ONS.
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