Bank of England holds rates at 3.75% as fuel and living costs climb

The Bank of England has held the base rate at 3.75% for a sixth consecutive time, but the vote was tighter than expected, with three of the nine-member committee pushing for an immediate rise to 4%.

The hold comes as inflation continues to climb, hitting 3.1% in August and forecast to push towards 4% in early 2027, driven largely by the ongoing conflict in the Middle East, which is pushing up global energy prices.

Drivers are already feeling the impact. Average UK fuel prices hit 167p a litre for petrol and 189p for diesel in early September, both up around 5p in a single week as oil pushed past $100 a barrel, with a further fuel duty rise adding to costs this autumn.

Nicola Henton, our Chief Mortgage Protection Adviser,

"We're seeing buyers factor fuel and everyday costs into their budgets much more carefully than even six months ago. It doesn't mean people are pulling out of the market, but it does mean getting the mortgage right from the start matters more than ever, so they're not caught out if rates do move again."

With inflation still rising and the Committee split, borrowers coming to the end of a fixed deal may want to start reviewing their options ahead of the next decision on 5 November.

To get in touch with Hello Mortgages advisers, please contact;

Tel: 0800 292 2557

Email: hello@hellomortgage.co.uk

Please note: This blog is only accurate as of 18/09/2026. As interest rates and the mortgage market change, Hello Mortgages' opinions and advice may also change.

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