Track the Bank of England Base Rate

What is the base rate? 

The base rate sets the amount the Bank of England charges other banks and lenders to borrow money. It’s reviewed every 6(ish) weeks at the MPC (monetary policy committee) meeting. It moves up and down – or stays the same – to help control inflation in the UK. Check back here for any movement on the rate and find a full breakdown in our Latest News section. 

Does the base rate affect my mortgage? 

It can do, but it won’t always. It depends what type of mortgage you have. 

Fixed rate mortgage 

With a fixed rate mortgage, the rate won’t change until the end of your fixed term, regardless of what happens to the base rate during that time. It’s good to keep an eye on rates in general though, as when your fixed rate comes to an end, rates may have changed. 

Tracker mortgages and the standard variable rate (SVR) 

The monthly cost tends to move in line with the base rate when it comes to tracker mortgages and SVR mortgages. So, if there’s no change in rates, it’s likely you won’t see a change either. If rates go up, your monthly payment may also go up. And even if rates go down, you’ll usually have a minimum rate set out in your mortgage terms. This is usually the amount you were paying at the start of the deal.  

Future mortgage base rate changes  

As you can see from our handy graph, the rate moves around a fair amount. It has increased a lot since 2021, so if your rate is set to expire soon, it might be worth talking to an advisor. This is because the standard variable rate may be much more than what you're on now.  

And either way, you could be affected by future Bank of England announcements, so it's good to stay tuned.