The latest Bank Rate decision
On 30 July 2026, the Bank of England's Monetary Policy Committee voted 6–3 to keep Bank Rate at 3.75%. The minority wanted a rise to 4%, so the decision was not a signal that borrowing costs can only fall from here. The next scheduled decision is 17 September 2026.
Bank Rate influences borrowing across the economy, but it is not a retail mortgage price. A tracker mortgage may move closely with Bank Rate. A lender's standard variable rate can change at its discretion. Fixed mortgage rates are shaped by expected future rates, wholesale funding, competition and the risk of the particular loan.
Compare the cost, not just the rate
A low rate with a large product fee can cost more than a slightly higher fee-free deal, especially on a smaller mortgage or a short fixed period. Compare the monthly payment, fees, incentives, early repayment charges and the total cost over the period you expect to keep the deal.
The mortgage illustration should show the Annual Percentage Rate of Charge, known as APRC, along with fees and what could happen to payments later. APRC is useful context, but your own expected holding period matters. Ask a regulated adviser or lender to explain the trade-off in pounds, not only percentages.
Stress-test before you offer
Start with the payment you could sustain in a difficult month, not the maximum a lender may offer. Model the end of a fixed deal at a higher rate, then add Council Tax, energy, insurance, service charges and a repair allowance. A mortgage is affordable only if the rest of your budget still works.
An agreement in principle is an estimate based on limited information. It is not a mortgage offer and does not approve a specific property. Avoid taking on new credit or making unexplained large transfers while an application is under review, and tell your adviser if income or spending changes.
What the 2026 mortgage-rule review changes today
The Financial Conduct Authority consulted in June and July 2026 on targeted changes for borrowers including people with variable income or past credit difficulties. The consultation has closed, but the FCA says a policy statement is expected later in 2026. Proposals are not the same as rules already in force.
Lenders still have to assess affordability. If your income is irregular, prepare clear evidence such as contracts, payslips, tax calculations and business accounts. A broker who understands your income pattern may be more useful than making several speculative applications.
A sensible mortgage checklist
- Compare total cost over the deal period, including product and broker fees.
- Check early repayment charges, overpayment limits and portability.
- Ask what evidence the lender needs before you choose a property.
- Keep an emergency fund rather than using every pound for the deposit.
Sources and further reading
- Bank of England: July 2026 Bank Rate decision
- FCA: 2026 mortgage rule review
- MoneyHelper: First-time home buyer guide
Mortgage products and rates can change quickly. This article is general information, not personal financial advice, and was last checked on 11 August 2026.