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Abby Wilson<\/a>\u00a0&\u00a0Emily White<\/a><\/p>\n \n 5 February 2026\n <\/p>\n The Bank of England has held the base rate at 3.75%. We explain why, the latest predictions for when it might change, plus what it means for your mortgage and savings.<\/p>\n The base rate is used by the central bank to charge other banks and lenders when they borrow money \u2013 so it influences what borrowers pay and what savers earn.<\/p>\n It’s also used by the Bank of England as a tool to control inflation (the rate at which prices rise). The Bank has a target \u2013 set by the Government \u2013 of 2% for the Consumer Prices Index (CPI) measure of inflation. The latest figures show that CPI inflation was 3.4% in the 12 months to December 2025 \u2013 up from November and above the Bank’s target.<\/p>\n Why the base rate was held<\/p>\n The Bank’s Monetary Policy Committee (MPC), which determines the rate, voted as follows:<\/p>\n Five members voted to hold the base rate at 3.75%.<\/p>\n Four members voted to cut the base rate to 3.5%.<\/p>\n The MPC said that although CPI inflation is currently above target, it is expected to fall back to 2% from April, meaning a future cut is likely. The MPC said: “On the basis of the current evidence, Bank Rate is likely to be reduced further.” <\/p>\n Commenting on the decision, Nicolas Mendes, of broker John Charcol, said: “A decision to hold Bank Rate at 3.75% comes as little surprise and should not be mistaken for a shift in direction. <\/p>\n “Inflation remains above target and the more stubborn elements of price growth have not softened enough to make another cut feel comfortable. The recent uptick will reinforce caution, particularly while services and food inflation remain elevated.”<\/p>\n A base rate cut looks likely in the coming months<\/p>\n Laith Khalaf, head of investment analysis at AJ Bell, said: “The market thinks we won’t get an interest rate cut until April at the earliest, and when it comes, that may be it for this year. April will be a key month because the Government’s energy price subsidy will kick in, and inflation should fall back substantially.”<\/p>\n Mr Mendes commented: “In simple terms, pricing still points to one or two further quarter point cuts over 2026, taking base rate towards the 3.25% to 3.5% range. The pace will depend on whether wage growth continues to cool, and services inflation shows clearer signs of easing.”<\/p>\n Ben Thompson, of broker Mortgage Advice Bureau, added: “The Bank of England has opted for the safety of the sidelines with today’s rate hold. Despite inflation moving in the right direction, the MPC clearly isn’t ready to hit the accelerator on further rate cuts yet, albeit we still hope for a couple more this year before we get close to some sort of new equilibrium.”<\/p>\n Brokers expect mortgage rates to remain relatively stable for a while<\/p>\n Mr Thompson said: “Since lenders will have already priced in this latest hold, the deals you see on the shelves today are likely as good as they’re going to get for a little while. Therefore the smart move right now arguably isn’t trying to wait out the market for a perfect moment that might not come: it’s about finding a deal that actually fits your life and your budget.”<\/p>\n Mr Mendes added: “For borrowers coming to the end of fixed rate deals in the next six months, the temptation may be to wait for further improvements. In practice, securing a deal early and keeping it under review remains the safer approach. If rates improve before completion, brokers can often switch borrowers onto a better option without delaying plans.”<\/p>\n Aaron Strutt, of mortgage broker Trinity Financial, concluded: “The money markets seem to be pricing in a further Bank of England base rate cut in April, so I suspect even though [mortgage] rates are going up a bit now, they will come back down again. Fixed [mortgage] rates may well fluctuate for a while but remain competitively priced.”<\/p>\n On your lender’s SVR? You can likely save \u00a31,000s with a new deal<\/p>\n A standard variable rate (SVR) is the rate you pay once your current mortgage deal comes to an end. SVRs have a variable rate of interest, which means the rate can change at any time.<\/p>\n SVRs are normally far more expensive than the best fixed or tracker deals \u2013 right now, a typical SVR is around 5% to 7%, while the top two- and five-year fixed rates start from about 3.6% and 3.9% respectively. So if you’re on an SVR, you should consider switching to a new deal now \u2013 see our Cheap mortgage finding<\/a> guide.<\/p>\n Some savings rates have dropped slightly \u2013 but you can still find a good deal<\/p>\n Since the base rate was cut to 3.75% in December<\/a>, the top savings rates available on easy-access accounts have dropped slightly, but it’s still crucial to check your interest now. Millions are on pants rates, and can easily and simply move their money to where it pays more. If you’re on a fix, diarise to act before it ends.<\/p>\n Currently, the top easy-access rate is for newbies to app-only bank Chase<\/a> at 4.5% variable. The next best rate is from West Brom Building Society<\/a> at 4.15% \u2013 though this rate will plummet if you withdraw more than four times per year. If you prefer an established name and aren’t eligible for the Chase deal, Virgin Money<\/a> also pays 4.15%, though you’re restricted to two withdrawals per calendar year. <\/p>\n If you’re worried about rates dropping and can lock money away, you might want to consider a fixed-rate account. Right now, you can lock in for a year at 4.24% with Cynergy Bank<\/a> (\u00a31,000+), or for two years at 4.18% with Birmingham Bank<\/a> (minimum \u00a35,000). <\/p>\nShare<\/p>\n