What The Bank Rate Means for Tracker and Variable Mortgages

As at 11 October 2026, the Bank of England Bank Rate is 3.75%. It was last changed on 18 December 2025.

Bank Rate is the interest rate the Bank of England sets. It influences the rates lenders charge on some mortgages and pay on savings.

This article does not predict future changes. Bank Rate can go up, down or stay the same, and that affects different mortgages in different ways.

Not every variable mortgage responds to Bank Rate in the same way. The type you hold matters.

• Tracker mortgage. The rate is set at Bank Rate plus a fixed margin, usually for a set period, though some trackers run for the whole mortgage term. If Bank Rate moves, your rate usually moves with it. Your payments can fall or rise.
• Standard variable rate (SVR). This is the lender's own default rate. The lender decides when and by how much it changes, so it may not follow Bank Rate exactly.
• Discount variable rate. This is set as a reduction from the lender's SVR for a period. It moves when the SVR moves, not directly with Bank Rate.

A tracker can give you the benefit of falls in Bank Rate (unless your deal has a minimum rate — see the checklist below). The downside is that you carry the risk of rises, so your monthly payment is less predictable than on a fixed rate.

Two borrowers on trackers can have different experiences. The small print decides how your rate behaves.

If you are choosing a deal, the mortgage illustration (ESIS) and mortgage offer should show most of these details; if you already have a mortgage, check your offer or annual statement. If anything is unclear, ask your lender to explain it. Speak to a mortgage adviser before making any decision about your mortgage.

Some borrowers compare options early and weigh up flexibility against certainty. A mortgage adviser looks at your income, outgoings and goals, and explains the types of mortgage, the costs and the risks. You can request a callback to be introduced to a mortgage adviser.

For current mortgage rates, see the rates page. The tools on this site can help you estimate payments at different rates.

Your home may be repossessed if you do not keep up repayments on your mortgage.

This article is general information only and is not personal advice. Your circumstances, the lender you choose and the product you take will affect what is right for you, so speak to a qualified mortgage adviser before making a decision.

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