June 2026: base rate held again as mortgage rates fall

With summer here, buyer activity remains steady across South Manchester, and there is plenty to update you on following the Bank of England's latest decision.

Bank of England: held for the fourth time in a row

The Bank of England voted 7 to 2 to hold the base rate at 3.75% on 18 June. Two members voted for a rise, up from one last time, a sign that the debate inside the committee is shifting.

Inflation sits at 2.8% but is expected to rise again as higher energy costs feed through. The conflict involving Iran continues to keep the outlook uncertain. The next decision is 30 July, and a cut is possible, but so is a rise.

Mortgage rates are falling

The good news is that mortgage pricing has been improving through June. Major lenders including HSBC, NatWest, Barclays and Santander have been cutting fixed rates following the spike we saw in April and May. Swap rates have eased as the situation in the Middle East has stabilised slightly, giving lenders the confidence to compete again.

That said, the picture can change quickly, and anyone sitting on the fence risks seeing that window close. If you are approaching the end of a fixed deal or planning to buy this summer, now is a reasonable time to review your options.

Are you on your lender's standard variable rate?

This catches a surprising number of people out. When a fixed rate deal ends and you do nothing, your lender automatically moves you onto its standard variable rate. The average SVR in the UK is currently just below 8%, compared with fixed rate deals available today that are considerably lower.

If that sounds familiar, get in touch. Switching could make a meaningful difference to your monthly payments, and I can usually have a new deal in place quickly.