Bank of England Holds Interest Rates at 3.75%: What It Means for Buyers and Sellers

The Bank of England has today decided to keep interest rates at 3.75%, meaning there’s no change to Bank Rate for homeowners and buyers following its September meeting.

It’s the sixth consecutive time rates have been held at 3.75%, but today’s decision wasn’t unanimous. Six members of the Bank’s Monetary Policy Committee voted to keep rates where they are, while three wanted to increase them to 4%.

The decision comes as UK inflation has risen to 3.1%, putting it considerably above the Bank’s 2% target.  

So, what does today’s announcement actually mean if you’re buying, selling or have a mortgage? Let’s take a look.

What happened to interest rates?

The Bank of England held Bank Rate at 3.75% on 17 September 2026.

That means rates have now remained at the same level since December 2025, following a series of cuts from their peak of 5.25%.

The vote was split 6–3, with three members preferring to increase Bank Rate to 4%.

That’s the same split as July, when six members also voted to hold and three backed an increase. At that meeting, the Bank said future decisions would depend on how inflation and the wider economic outlook developed.  

Why has the Bank of England held rates?

The Bank’s job is to keep inflation at 2% over the medium term, and Bank Rate is its main tool for doing that.  

UK inflation is currently 3.1%, so it’s running above that target.  

Energy prices have been one of the big uncertainties for the Bank this year. Higher and more volatile energy costs can push up household bills and increase costs for businesses, which can then feed through into the prices we pay for other goods and services.

The Bank has previously made clear that it will respond as needed to bring inflation sustainably back towards its 2% target.  

For now, the majority of the committee has decided to leave Bank Rate where it is.

What does this mean for mortgages?

A hold doesn’t mean mortgage rates will automatically stay the same.

Bank Rate influences borrowing costs, but it’s only one of the things lenders consider when pricing mortgages. Funding costs, market expectations, the length of the mortgage and the individual borrower can all affect the rate you’re offered.  

In fact, some mortgage lenders had already increased rates on new fixed deals ahead of today’s announcement as wider borrowing costs increased.

So while Bank Rate hasn’t changed, buyers and homeowners remortgaging could still see mortgage deals move.

If you’re on a fixed-rate mortgage

Nothing changes immediately because of today’s announcement.

Your interest rate and monthly repayments should remain the same until your fixed period ends.

If your deal is coming to an end soon, it’s worth checking what’s available rather than assuming mortgage rates will move in the same direction as Bank Rate.

If you’re on a tracker mortgage

Tracker mortgages usually move in line with Bank Rate, so today’s hold means there shouldn’t be a Bank Rate-related change to your interest rate.

Check the terms of your individual mortgage to see exactly how your rate is calculated.

If you’re on a standard variable rate

Your lender decides its own standard variable rate (SVR).

A Bank Rate hold doesn’t require lenders to change their SVRs, although Bank Rate is one of the factors that can influence them.

What does this mean for buyers?

For buyers, today’s decision means Bank Rate itself hasn’t become more expensive.

However, that doesn’t necessarily mean the mortgage deal you were looking at last month will still be available at the same rate today.

Mortgage affordability is still an important part of working out your budget, so compare the deals available to you and think about what the monthly repayments would mean for your finances.

It’s also worth getting a mortgage agreement in principle before seriously searching for a home, so you have a clearer idea of what you may be able to borrow.

What does this mean for sellers?

For sellers, there’s no immediate change to Bank Rate following today’s announcement.

But mortgage costs still affect what many buyers can afford, so realistic pricing remains important.

Rather than focusing too heavily on the national interest rate picture, look at what’s actually happening in your local property market: recent sold prices, how much competition there is from similar homes and the level of interest your property attracts.

If you’re considering selling, you can book your free valuation with Purplebricks to get a better idea of what your home could be worth.

Could interest rates rise later in 2026?

They could, but there’s no certainty over what the Bank will do next.

The split in today’s vote shows that members of the Monetary Policy Committee don’t all agree on whether 3.75% is still the right level.

Inflation will be one of the key things to watch. The Bank has a 2% target, while the current rate is 3.1%.  

Energy prices, wage growth and the wider economy will also feed into future decisions.

The Bank makes its decisions meeting by meeting, so it’s better not to assume that today’s hold means either a rise or a cut is coming next.

When is the next Bank of England interest rate decision?

The next Bank of England interest rate announcement is scheduled for 5 November 2026.

There will then be one final scheduled decision this year on 17 December 2026.  

Until then, mortgage rates can continue to change independently of Bank Rate, so anyone buying or remortgaging should keep an eye on the deals actually available to them.

The bottom line

For now, Bank Rate remains at 3.75%, but with inflation at 3.1% and three members of the Monetary Policy Committee voting for an increase, there’s still uncertainty around what happens next.

For buyers and sellers, the important thing to remember is that Bank Rate is only one part of the property picture. Mortgage pricing can change between Bank of England meetings, while house prices and buyer activity can vary significantly from one local market to another.

Thinking about making a move? Book your free valuation with Purplebricks to find out what your home could be worth in today’s market.