Bank Rate has been held again: What buyers and remortgagers should do before September
The Bank of England held Bank Rate at 3.75% on 30 July, extending the pause that has been in place since earlier this year. But this was not an entirely comfortable hold. The Monetary Policy Committee voted 6 to 3 to leave rates unchanged, with three members preferring an increase to 4%. The next decision is due on 17 September 2026. The Bank’s July decision is here: https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2026/july-2026
For mortgage borrowers, that means another period in which Bank Rate itself is stable but mortgage pricing may not be. If you are buying, remortgaging, or wondering whether to wait for clearer direction in September, the more useful question is not simply what the Bank might do next. It is how much uncertainty you are comfortable carrying while lenders continue to adjust their own rates.
Why fixed mortgage rates can still move
Fixed mortgage rates are influenced by more than the current Bank Rate. Lenders also consider wholesale funding costs and financial market expectations about where rates may go over the coming years. That means fixed products can become more or less expensive before the Bank changes anything.
This has been visible again over the summer. Moneyfacts reported on 10 August that average fixed rates increased for the first time since April. Its data showed the average two year fixed rate rising from 5.52% to 5.63% over the month, while the average five year fixed rate moved to 5.66%. The report is here: https://moneyfactscompare.co.uk/news/mortgages/rates-rise-as-lenders-reverse-course/
So a September Bank Rate hold would not necessarily mean fixed mortgage rates remain exactly where they are today. Equally, borrowers should not assume a future Bank Rate increase would translate mechanically into the same increase across every fixed product.
What about tracker mortgages?
Tracker mortgages work differently because their interest rate normally follows Bank Rate, plus a lender margin. With Bank Rate remaining at 3.75%, an existing tracker linked directly to Bank Rate would not usually see its rate change as a result of the July decision.
That can make trackers attractive to borrowers who want flexibility or believe rates may eventually fall, but it also means accepting more uncertainty around future payments. The July MPC vote is a reminder that risks currently run in both directions. Three policymakers wanted a rise rather than a hold.
That uncertainty has become more relevant since the meeting. UK CPI inflation rose to 2.9% in July, up from 2.6% in June and slightly above the Bank’s latest forecast. Higher household energy costs were the main driver. Reuters’ report on the 19 August inflation figures is here: https://www.reuters.com/world/uk/uk-inflation-picks-up-29-year-on-year-july-2026-08-19/
That does not tell us what the Bank will do on 17 September, but it is another reason not to treat a rate cut, hold, or increase as a certainty.
What this means if you are buying
If you are buying, the single most important factor remains when you actually find somewhere you want to buy. Trying to time your home purchase around one MPC meeting can become a distraction if the right property appears and the mortgage numbers already work for you.
Once you have found somewhere, being prepared becomes important. Have an up to date agreement in principle, your deposit evidence ready, and the documents your lender or broker is likely to need. If you find a suitable fixed deal, delaying solely because September might produce something cheaper carries the risk that lenders reprice in the opposite direction before you apply.
The aim is not to rush. It is to avoid allowing speculation about one future rate decision to override the much bigger questions of whether the property is right, the price is sensible, and the monthly payment is affordable.
What this means if you are remortgaging
Remortgagers generally have more control over timing. If your current fixed deal ends in the coming months, it makes sense to start comparing options well before the expiry date rather than waiting until after 17 September.
Securing an option early can provide a degree of protection against further repricing. Depending on the lender and product, there may also be opportunities to review the position again before completion if rates improve, although this varies and should not be assumed.
What matters most is avoiding a situation where waiting for a better rate leaves you with fewer choices or causes you to move temporarily onto a significantly more expensive standard variable rate.
Practical takeaways before September
If you are buying, focus first on finding the right property and making sure the mortgage is affordable at today’s rates. If you are remortgaging, start comparing before your existing deal gets too close to expiry. Tracker borrowers should be comfortable with payments potentially moving after future Bank Rate decisions, while borrowers choosing a fixed deal are paying for greater certainty.
The 17 September decision may give borrowers more information, but it may not provide the clear direction some are hoping for. Mortgage markets often move before the MPC does. If you are buying or approaching the end of a current mortgage deal, Altura Mortgage Finance can help you compare the options available now and decide whether waiting genuinely improves your position.
Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Think carefully before securing other debts against your home. The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK. Altura Mortgage Finance Limited is authorised and regulated by the Financial Conduct Authority. Firm Registration No: 827849 www.fsa.gov.uk/register/home.
