TL;DR
- Base rate held at 3.75% at the 30 April 2026 MPC meeting; vote was 8 to 1, with one member voting for a rise.
- CPI inflation is running at 3.3% in the 12 months to March 2026, above the 2% target.
- Next MPC decision: 18 June 2026.
- Average SVR is around 7.15%; the cheapest 5 year fixes sit near 4.35% on a 75% LTV.
- Fixed mortgage pricing tracks swap rates more than Bank Rate, so a hold does not automatically mean fixes will fall.
Last reviewed: 16 May 2026
What happened
The Bank of England Monetary Policy Committee voted on 30 April 2026 to keep Bank Rate at 3.75% for the third consecutive meeting. Eight members backed the hold; one voted to raise the rate by 0.25 percentage points to 4.0%. The MPC said CPI inflation, currently 3.3%, was likely to rise further in the second half of 2026 as the effects of the Middle East conflict feed through to energy and oil prices.
Why rates are stuck
Until late 2025, markets had expected the Bank to keep cutting through 2026 as inflation drifted back to target. That path has been broken by the Iran conflict. Disruption around the Strait of Hormuz, where roughly a fifth of global oil and liquefied natural gas passes, has pushed wholesale energy costs back up. The Bank now expects inflation to be higher later this year before any return to the 2% target.
What it means for mortgages
The headline effect is muted. Tracker mortgages stay flat at the current rate. Standard variable rates, which average just under 8% across major lenders, are unchanged. Fixed mortgage pricing, however, is set by swap rates and lender funding expectations rather than Bank Rate alone. A market that still believes rates may need to move higher later in the year means fixed deals are unlikely to cheapen materially in the short term, even with rates held.
Borrowers coming off two or five year fixes taken when rates were much lower will still face a step up on remortgage. Two and five year fixes remain cheaper than reverting to a typical SVR.
What it means for savers
Easy access cash ISA rates are still pushing above 4.3%, with the best one year fixed cash ISA rates running close to 4.66%. Savers locking in 12 month deals are paying close attention to whether the assessment window for the July energy price cap, which closes on 18 May, pushes the market back towards expecting cuts later in 2026.
What to watch next
The next MPC decision lands on 18 June 2026. Before that, Ofgem confirms the July to September energy price cap on 27 May. The Q3 cap announcement is the single biggest near-term input into the inflation picture and into September swap rate pricing.
Editorial note: Kael Tripton is an independent UK publisher. This article is general information, not financial, legal or regulated advice. Figures, rates and rules can change after publication. Always check the primary sources linked below before acting.
Frequently asked questions
What is the current Bank of England base rate?
3.75% as of the 30 April 2026 MPC decision. The next meeting is on 18 June 2026.
Will my mortgage payment change?
If you are on a tracker linked to Bank Rate, no change. If you are on a fixed rate, your payment is locked for the term of the fix. If you are on a standard variable rate, your lender sets the rate and may or may not move it; most SVRs have stayed close to 8%.
Are mortgage rates going to fall in 2026?
Forecasts diverge sharply. Some economists expect the Bank to hold through 2026; others expect at least one rise if Middle East-driven inflation persists. Lenders price fixed mortgages off swap rates, which have edged higher amid the uncertainty, so a sustained fall in fixes is not guaranteed.
Where can I check the official rate?
The Bank of England publishes the current Bank Rate and meeting calendar on its website (link in primary sources below).
