Every time the Bank of England meets, we get a flurry of clients asking the same question. should they secure a mortgage deal now or wait in the hope that something better becomes available?
The Bank’s latest decision gives us some useful information, so let’s look at what happened and what it could mean for your remortgage plans.
The Quick Answer
- On 30 July 2026, the Bank of England kept the Bank Rate at 3.75% for the fifth consecutive meeting.
- The Monetary Policy Committee voted 6–3 to hold the rate. Three members wanted to increase it immediately, up from two members at the previous meeting.
- UK CPI inflation fell to 2.6% in the year to June. This gave the Bank more scope to hold while it assessed the risks from volatile energy prices, rather than raising rates immediately.
- Ongoing conflict in the Middle East has caused significant movements in oil and gas prices. This uncertainty is a major reason why the Bank is proceeding cautiously.
- Our general guidance is that this decision is not a clear signal that cheaper mortgage rates are imminent. If your existing deal ends within the next few months, now is a sensible time to start reviewing your options.
- Starting early may allow us to secure a suitable rate while continuing to monitor the market. If rates fall before completion, we can investigate whether a lower suitable rate is available. If rates rise, the rate already secured will normally remain available until the mortgage offer expires, subject to the lender’s conditions.
A Closer Look at the Decision
Bank Rate has remained at 3.75% since the last reduction in December 2025.
Nine people sit on the Bank of England’s Monetary Policy Committee. At its July meeting, six voted to hold the Bank Rate at 3.75%, while three wanted to increase it to 4%.
At the previous meeting in June, only two members voted for an increase. The movement from two votes to three indicates that some members of the Committee have become more concerned about inflationary risks, even though the headline rate has not changed.
There are opposing forces at work. UK inflation has cooled, which would ordinarily strengthen the case for lower interest rates. At the same time, renewed conflict in the Middle East has caused considerable volatility in energy markets.
That volatility makes it harder for the Bank to predict the path of inflation. The Committee has therefore chosen to wait for further evidence before changing Bank Rate.
The next scheduled decision is due on 17 September 2026.
Why the Committee Chose to Hold
Two main factors were pulling in different directions before the meeting.
UK CPI inflation fell by more than expected, reaching 2.6% in the year to June, down from 2.8% the previous month. This gave the Bank a genuine reason not to tighten monetary policy immediately.
However, renewed conflict in the Middle East has caused oil and gas prices to move sharply. Brent crude briefly exceeded $100 a barrel during July before falling back significantly. The Bank recorded the front-month Brent crude future at around $84 per barrel on 28 July, illustrating just how quickly conditions have changed.
The Strait of Hormuz is an important route for global oil and gas supplies, so disruption or escalating tension in the region can feed into UK energy costs. In turn, higher energy costs can affect transport, manufacturing, food prices and household bills.
The result is a Bank that held the headline rate steady while becoming increasingly alert to the possibility of renewed inflationary pressure.
What This Means for Your Remortgage Timing
We understand the instinct to wait. Nobody wants to secure a mortgage rate today only to see a cheaper deal become available a few months later.
However, waiting works both ways. Rates could fall, remain broadly unchanged or increase. It is therefore important to base your decision on the options available and your personal circumstances, rather than relying entirely on a forecast about where rates might be in six months.
The 6–3 vote shows that the Committee is paying closer attention to upside inflation risks. However, it does not mean that the next change will necessarily be an increase. The outlook remains highly uncertain and will depend partly on energy prices, inflation data and developments in the wider conflict.
Bank Rate is also only one influence on mortgage pricing. Fixed mortgage rates are affected by financial-market expectations, swap rates, competition between lenders and a borrower’s individual circumstances. A decision to hold Bank Rate does not therefore guarantee that mortgage rates will remain unchanged.
One advantage of starting your remortgage application early is that we may be able to secure a suitable rate for you while continuing to monitor the market before completion. If a lower suitable rate becomes available, we can normally switch your application to the new product, provided the lender’s conditions are met and your circumstances do not materially change.
If rates increase, the rate already secured will remain available until the mortgage offer expires.
The options available depend on the lender and product. We will explain any implications before recommending a change.
None of this means that you must rush into a decision you are not comfortable with. It simply means that waiting solely in the hope of securing a lower rate may be a less reliable strategy than it appeared a few months ago.
What We'd Suggest You Do Next
Our general guidance is to begin reviewing your options approximately three to six months before your current mortgage deal ends.
Leaving it too late could mean moving onto your lender’s standard variable rate by default. This can be more expensive than securing a new deal, meaning you may pay more while arranging your next mortgage.
In practice, the process usually involves three straightforward steps:
- Check Your Numbers: Get a clear picture of what you could borrow and what a new deal might cost you.
- Gather Paperwork Early: Collect the paperwork lenders will want which is proof of income, recent bank statements, and ID. Even if you plan on staying with your existing lender.
- Talk to Us Before Committing: Speak to our expert team so that we can assess the available options and compare suitable deals from the lenders we work with, rather than limiting your search to the deal offered by your current lender.
If your circumstances involve more than a straightforward like-for-like switch, our specialist mortgage services covers everything from residential remortgages through to buy-to-let and portfolio landlord arrangements.
A Quick Word for Clients with Less Straightforward Income
This timing guidance is particularly important if your income does not come from one straightforward monthly salary.
You might trade as a sole trader, work through a limited company, run your own business or receive income from several sources. Mortgage applications involving complex income often take longer to prepare, not because lenders are necessarily being difficult, but because there may be more paperwork to assemble and additional supporting information to provide.
We see this most often with our dentist mortgage clients, but it applies equally to portfolio landlords and other business owners.
If this sounds like your situation, allowing extra time before your current deal ends is especially important. Trying to complete a complex application during the final few weeks can create unnecessary pressure and limit your options.
These are the types of cases we handle every day. Bring us your figures early and we will give you an honest assessment of your position and the options that may be available.
Frequently Asked Questions
Did interest rates go up today?
No. The Bank of England held the Bank Rate at 3.75%. Three of the nine Monetary Policy Committee members voted for an immediate increase to 4%, but the majority voted to keep the rate unchanged.
Why did the Bank hold instead of cutting rates further?
UK inflation fell, which would ordinarily support the case for a cut. However, conflict in the Middle East has caused significant volatility in energy prices, creating further uncertainty about the inflation outlook.
The majority of the Committee decided that keeping Bank Rate unchanged would allow more time to assess the evidence.
Is now a good time to start my remortgage search?
For many homeowners, yes - particularly if your existing mortgage deal ends within the next six months.
Beginning your search does not mean that you must commit to a particular mortgage immediately.
It gives you time to understand your options, prepare the necessary paperwork and avoid making a rushed decision close to the end of your current deal.
Starting early may also allow us to secure a suitable rate while monitoring the market before completion. If a lower suitable rate becomes available, we can check whether your lender permits a switch. If rates increase, the rate already secured will normally remain available until the offer expires, subject to the lender’s conditions.
Our frequently asked questions page covers costs and timing in more detail if you want to plan ahead.
Does this affect clients with complex income differently?
The Bank’s decision does not directly determine the mortgage rate an individual borrower will be offered. However, it can affect the wider market in which lenders price their products.
Applications involving complex income, including those from dentists and business owners, generally require more preparation. Starting early is therefore particularly valuable.
When will the Bank of England next review rates?
The next Bank of England interest-rate decision is scheduled for 17 September 2026.
Compliance Notice
Sarah Grace Mortgages Ltd is authorised and regulated by the Financial Conduct Authority. As a mortgage is secured against your home or property, it could be repossessed if you do not keep up the mortgage repayments. The Financial Conduct Authority does not regulate most forms of Commercial Buy to Let Mortgages and Mortgages to Limited Companies.
