Newsletter · 28 October 2026
Interest rates and your mortgage: autumn 2026
Mortgage rates have risen this year even though the Bank of England has not changed its own rate. If your fixed rate ends in the next year, now is a good time to plan.
What has happened
- Bank Rate has been held at 3.75% so far in 2026
- Average mortgage rates have still risen by around 1 percentage point this year, as markets expect rates to go up
- Inflation rose to 3.5% in September 2026, up from 3.1% in August, mainly because of higher petrol and diesel prices
- The Bank of England expects inflation to go slightly above 4% in early 2027, and household energy bills are forecast to rise again in January
What could happen next
In mid-October, most economists polled by Reuters expected the Bank of England to raise Bank Rate to 4.0% at its November meeting, and financial markets were pricing in further rises into 2027. Forecasts can and do change, so nobody can be certain where rates will go.
If your fixed rate ends in the next 12 months
- Find out exactly when your deal ends and whether there is an early repayment charge
- Many lenders let you secure a new rate up to six months before your deal ends – and you can often switch if rates fall before completion
- Compare a product transfer with your current lender against the whole market
- Think about how long to fix for, and whether overpaying while you can makes sense
- Do not drift onto your lender's standard variable rate, which is usually much higher
How we can help
Use our free remortgage calculator to see what a new rate could mean for your payments, and set a free reminder so we get in touch before your deal ends.
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage.
Source: House of Commons Library, Autumn Budget 2026: Background briefing (CBP-12245), 22 October 2026. This newsletter is general information, not personal advice.
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Remortgage calculator
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Q&A
Questions & answers
How early can I remortgage?
Many lenders let you secure a new rate up to six months before your current deal ends, so you are protected if rates rise in the meantime.
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Talk to an independent financial adviser in St Albans. Call 01727 223251 or send us a message.
