Homebuyers are expected to remain cautious as autumn approaches, despite the Bank of England keeping its base rate at 3.75%. Financial experts note that recent increases in fixed mortgage rates to an average of 5.87% have made the housing market more price-sensitive, with buyers exercising careful consideration due to higher costs. Sellers are advised to set realistic prices given the abundance of available properties on the market, which gives buyers significant leverage.
Written locally by qwen2.5:14b on 2026-09-17,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
The Bank of England decided to keep interest rates at 3.75%, marking the sixth consecutive meeting where they have held steady despite rising inflation concerns. The Monetary Policy Committee (MPC) voted 6-3 to maintain current rates, with three members advocating for a hike to 4%. Inflation rose to 3.1% in August, up from 2.9% the previous month, surpassing the Bank's target of 2%. Economists predict further rate increases if global energy prices remain volatile due to the ongoing conflict in Iran. Meanwhile, mortgage rates have already climbed beyond the base rate as lenders anticipate future hikes by the central bank.
Written for “Interest Rates Decision UK BoE” on 2026-09-17,
grounded in this article and the 6 other(s) covering the same event.
Why this leaning score
This article does not take a side on a contested political
question, so it has no leaning score. That is an
answer rather than a gap: a match report or a rescue can be warmly
or critically written without being left or right, and scoring it
anyway is how approval of a subject gets recorded as a political
position.
No political leaning scored for article 15928 · logged 2026-09-17
Homebuyers are expected to show caution in the months ahead, despite the Bank of England base rate being left unchanged on Thursday.
asserted
rate → expect → Thursday
The base rate was held at 3.75%, but experts pointed to rises in fixed mortgage rates in recent weeks and a “price sensitive” housing market where buyers are being mindful of their costs.
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buyers → hold → costs
House-hunters also have a wide choice of homes for sale, meaning sellers need to price realistically, experts said.
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experts → have → sale
The average five-year fixed-rate homeowner mortgage on the market was at its highest level since November 2023 on Thursday, according to financial information website Moneyfacts.
uncertain
mortgage → fix → Moneyfacts
It said the average five-year fixed homeowner mortgage rate on Thursday was 5.87%, jumping from 5.81% on Wednesday.
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rate → say → Wednesday
Several lenders have hiked fixed mortgage rates in recent weeks amid rises in swap rates, which are used to price mortgages.
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which → hike → mortgages
Stephen Gomez, a mortgage adviser at Wesleyan, said: “A (Bank of England base rate) hold is not a pause button for mortgage costs.
“Fixed mortgage rates are influenced by what financial markets expect to happen next, so lenders can increase their prices even when the Bank of England makes no change.”
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Bank → say → change
Susannah Streeter, chief investment strategist, Wealth Club said: “Fixed mortgage rates are guided by swap rates, which reflect expectations for where interest rates are heading, rather than simply where (the Bank of England base rate) stands today.
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rates → say → England
“With markets still pricing in further rate hikes, swap rates have been pushed higher, and lenders have already been raising some fixed mortgage rates.”
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lenders → price → rates
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Simon Gammon, managing partner, Knight Frank Finance, said the base rate hold “won’t provide much comfort to mortgage borrowers”.
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hold → read → borrowers
He added: “The rise in fixed rates has made trackers, which still sit close to 4%, much more attractive.
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which → add → rates
“We are seeing more borrowers – particularly those with larger loans – accept some exposure to potential future increases in the base rate in exchange for lower outgoings.
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borrowers → see → outgoings
“However, buyers can take confidence from the housing market’s resilience so far this year.”
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buyers → take → resilience
She said: “Mortgage costs are still weighing on affordability, while buyers have a high level of choice and can afford to be selective.”
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buyers → say → choice
Mark Manning, managing director of Northern Estate Agencies Group, which owns Manning Stainton, Ryder & Dutton and Mortimers, said that in terms of the stock of homes available on the housing market to buy “buyers have significantly more choice than they have been used to, and that has shifted the balance of power to them.
“This, combined with slightly higher mortgage rates, means that sellers need to price their properties realistically in order to attract potential buyers and sell quickly.”
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sellers → own → buyers
Alice Haine, head of personal finance, Hargreaves Lansdown said: “Several major lenders have already nudged mortgage rates up this month, which will test affordability for both homeowners approaching the end of a fixed-rate deal and first-time buyers trying to get onto the property ladder.”
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which → say → ladder
But she added: “For savers, the outlook is brighter.
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outlook → add → savers
“Competitive savings rates are back, giving cash a greater opportunity to outpace inflation and work harder.
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rates → give → inflation
“Those with money festering in an account paying a meagre rate risk missing out unless they shop around for a better deal.
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they → fester → deal
“Few things are more frustrating for savers than watching inflation steadily erode the spending power of cash.”
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inflation → watch → cash
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