Bank of England Holds at 3.75% — Rates On Hold Through 2026. Here's What Bad Credit Borrowers Must Do Now.
The Decision
The Bank of England held the base rate at 3.75% today, voting 6-3. Six members of the Monetary Policy Committee voted to hold. Three voted to hike. No surprises from markets — this was the expected outcome.
The MPC remains strictly cautious, heavily influenced by the ongoing, yo-yoing conflict in the Middle East. Energy price volatility and geopolitical instability keep inflation risks front and centre, giving rate-setters little room to manoeuvre.
What This Means for the Rest of 2026
The three votes for a hike are the real story here. A 6-3 split is a divided committee — and the hawks are not going away. If Middle East tensions escalate further and oil prices spike again, those three hike votes could become four or five at the September meeting.
The base rate staying at 3.75% is not a green light to wait. Halifax, Santander, HSBC and Barclays have all raised mortgage rates in the last week independently of the base rate decision — driven by swap rate movements tied directly to energy market volatility. Lenders do not wait for the BOE to move. They have already moved.
This will keep property prices elevated and mortgage transactions steady — but it will not bring the rate relief many borrowers were hoping for before Christmas. Initial hopes for rate cuts have dissolved.
What Bad Credit Borrowers Should Do Right Now
The specialist lending market has been moving independently of base rate for months. The hold today changes nothing for bad credit borrowers — the window for good specialist rates is not tied to what the BOE does. It is tied to what individual lenders do, and they are moving now.
⚡ Action Points — Today
- If you are on a variable rate or tracker — today's hold is a temporary reprieve. With three MPC members voting to hike, a rate increase at the September meeting is a real possibility. Lock in a fixed rate now.
- If you have a CCJ, default or IVA — the specialist market has 65+ lenders who assess your case individually. The base rate being held does not affect your options. WhatsApp me and I will tell you exactly where you stand.
- If you are approaching a renewal — lenders are raising fixed rates independently. Every week you wait could cost you hundreds of pounds per month. Secure a rate today — you can switch to a lower one if the market improves, but you cannot go back to a rate that has been withdrawn.
- If you are a first-time buyer — rates on hold means house prices stay elevated. Waiting for rates to fall before buying is likely to cost you more in property price appreciation than you save in interest. Act now.
Next BOE Decision
Don't Wait for September
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The Mortgage Geezer is a trading style of Access Financial Services Limited, authorised and regulated by the Financial Conduct Authority — FCA No. 301173. Your home may be repossessed if you do not keep up repayments on your mortgage. This is not financial advice — speak to a qualified mortgage adviser before making any decisions.