On 5 February 2026, the Bank of England opted to keep the base rate at 3.75%, maintaining current borrowing costs after a narrow decision from policymakers. 🇬🇧
The Bank’s key focus remains on tracking inflation as it heads back toward the 2% target — but what does this mean for us?
📉 Mortgages: Little Change… For Now
If you’re on a tracker or variable mortgage, your monthly payments are unlikely to fall just yet. For those with fixed‑rate deals, nothing changes until your current term expires — but it’s worth keeping one eye on remortgaging deals if you’re coming up for renewal.
💰 Savings: Soft Competitive Pressure
With the base rate unchanged, the incentive for banks and building societies to lift savings rates remains limited. Some accounts may still offer competitive returns, but don’t expect a big jump just because the Bank of England held the base rate.
💡 Tip: Shop around for savings that actually beat inflation — base rate signals don’t always translate into better consumer rates immediately.
Check out Financielle’s top saving accounts picks here.
🔮 What’s Next?
Economists and markets still reckon that interest rates will fall later in 2026 — but the Bank wants clearer evidence inflation is sustainably easing before delivering another cut. The next meeting of the Monetary Policy Committee is in March – we’ll have to see what is decided then.