THE PROPERTY FILTER TAKE
The Bank of England held Bank Rate at 3.75% on a 6-3 vote announced on 17 September 2026, with three MPC members preferring a rise to 4% (Bank of England).
What I'd do with this information: treat the hold as a pause, not relief, because the Bank's minutes put quoted two-year fixed mortgage rates around 95 basis points above their pre-conflict level.
Consider mapping every fixed-rate expiry in your portfolio and speaking to your broker about refinance timing ahead of the next decision on 5 November.
The Bank of England rate decision was a hold, but a narrow one. The Monetary Policy Committee (MPC, the nine members who set Bank Rate) voted 6-3 to keep it at 3.75% at its meeting ending 16 September 2026. That is according to the Bank's September Monetary Policy Summary, published on 17 September. Three members wanted a rise to 4%. From a portfolio perspective, the vote matters less than what fixed-rate pricing is already doing.
How close was the Bank of England rate decision?
Megan Greene, Catherine L Mann and Huw Pill preferred a 0.25 percentage point increase, to 4% (Bank of England minutes, 17 September 2026). The Committee judged the risks to inflation "tilted to the upside, and more so than at the time of the July Monetary Policy Report".
Andrew Bailey chairs the Committee and voted to hold, but he flagged second-round effects (knock-on rises in wages and prices). If the Middle East conflict persists for an extended period and that risk grows, he said in the minutes, "it is likely that policy may have to tighten". The minutes also record CPI (Consumer Prices Index) inflation at 3.1% in August. Based on energy prices at 14 September, the Bank expects it to reach slightly above 4% in 2027 Q1.
The hold itself was no surprise. Ahead of the meeting, PropertyWire (14 September 2026) reported a consensus of 65 economists polled by Reuters expecting rates to stay at 3.75%. The split vote is the part worth pricing into your plans.
Why are mortgage costs rising without a base rate move?
Because swap rates determine the pricing lenders use for mortgage products, as PropertyWire noted on 14 September. It reported that mortgage rates had climbed over the previous 10 days. Volatility in international bond markets had pushed swap rates to a three-year high.
The Bank's own minutes confirm the pass-through. The quoted rate on two-year fixed-rate mortgages was around 95 basis points (0.95 percentage points) higher than before the conflict (Bank of England, 17 September 2026). At the time of the meeting, the UK short-term interest rate curve peaked at around 4.9% by end-2027. In other words, borrowing costs have moved without the MPC voting for a rise.
The effective rate on newly drawn mortgages rose to 4.45% in July, from 4.35% in June, according to the Bank's Money and Credit release for July 2026 (1 September 2026). The rate on the outstanding stock was 3.97%. That 0.48-point gap is roughly the premium new money carries over the outstanding stock. Our negotiation and finance guides cover how to prepare for a lender conversation.
What does this mean for a buy-to-let portfolio?
Mortgage approvals have softened. Net mortgage approvals for house purchase fell to 56,100 in July, from 58,200 in June, and below a six-month average of around 60,800 (Bank of England, 1 September 2026). Approvals for remortgaging with a different lender rose to 34,500, from 34,100.
Now scale a 0.25-point rise to a portfolio. As an illustration, take £1,000,000 of interest-only borrowing (you pay only the interest each month) across eight BTL (buy-to-let) properties. A 0.25-point rise costs £2,500 a year, or £208.33 a month. You can test each property's rental cover with our free BTL stress test calculator.
The next scheduled MPC announcement is Thursday 5 November 2026, alongside the November Monetary Policy Report (Bank of England calendar). If you hold fixed deals ending in the next 12 months, you may wish to ask your broker how today's pricing compares with your current rate. Refinancing (replacing an existing loan to release or restructure equity) on a rising curve changes the leverage play. Our property investment strategies hub sets out how to weigh it over the cycle.
Key takeaways
The Bank of England held Bank Rate at 3.75% on a 6-3 vote announced on 17 September 2026, with Megan Greene, Catherine L Mann and Huw Pill preferring a rise to 4%.
The Bank's minutes put quoted two-year fixed mortgage rates around 95 basis points above their pre-conflict level, with the short-term rate curve peaking around 4.9% by end-2027.
Net mortgage approvals for house purchase fell to 56,100 in July from 58,200 in June (Bank of England Money and Credit, 1 September 2026).
As an illustration, a 0.25-point rise adds £208.33 a month on £1,000,000 of interest-only borrowing.
The next scheduled MPC announcement is on Thursday 5 November 2026.
Frequently asked questions
What did the Bank of England decide in September 2026?
Why are mortgage rates rising if Bank Rate is unchanged?
How many mortgages were approved in July 2026?
When is the next Bank of England rate decision?
