Bank of England Base Rate Announcement: 5th February 2026

What happened with interest rates today?

The Bank of England voted to keep the base rate at 3.75%. This was widely expected, following the rate cut back in December 2025.

Five of the nine Monetary Policy Committee (MPC) members voted to hold, while four voted for a further cut. The split vote suggests more changes could be on the horizon if economic conditions evolve as predicted.

Why did the rate stay the same?

Inflation unexpectedly rose to 3.4% in December, so the Bank is treading carefully. The base rate has already been cut four times in the past year, and while that’s made borrowing a little easier, the Bank is still trying to strike a balance between easing financial pressure and keeping inflation under control.

The Bank also cut its growth forecast for the UK economy in 2026 – now expecting 0.9% growth, down from 1.2%. A slower economy often means fewer changes to rates, at least in the short term.

What does no change mean for the housing market?

Holding the base rate at 3.75% won’t cause immediate waves in the housing market, but it helps keep conditions stable.

Lower interest rates usually mean cheaper mortgage deals, which can encourage more buyers to enter the market. That in turn can support house prices, especially if demand begins to outpace supply. But with inflation still above target and economic growth slowing, the Bank of England is playing it safe.

Since there’s been no change today, we don’t expect to see a major shift in buyer or seller behaviour right away. Still, recent cuts (and the potential for more later this year) could slowly build momentum as confidence returns.

In short: no surprises, but plenty to keep watching. If you’re thinking about moving, this period of stability might offer a window to act before rates move again.

How does this affect my mortgage?

If you’re on a fixed-rate mortgage: Nothing changes immediately. Your rate stays the same until your deal ends.

If you’re on a tracker or SVR (Standard Variable Rate): Your monthly payments may have dropped slightly after the December cut — and they’re likely to remain at that level for now. No change today means no increase, but further cuts could come later this year.

If your current rate is ending soon: Now is a good time to review your options. A lower base rate could mean more competitive fixed-rate deals are becoming available.

Want to speak to a mortgage expert? Book a free call with Purplebricks Mortgages.

Could the rate change again soon?

Possibly. The Bank has said that if inflation continues to fall and the economy slows as expected, there may be room for more rate cuts later in 2026. But for now, they’re taking a cautious approach.

We’ll be keeping a close eye on future updates and what they mean for buyers, sellers and homeowners.

Want help making sense of your next move? Book your free house valuation or speak to our expert mortgage team today.