Bank of England Holds 3.75% as Mortgage Advice Split Widens

Bank Rate stayed at 3.75% on 30 April, and mortgage advice turned harder because tracker deals can run up to three quarters of a percent below fixed rates. For borrowers and brokers, the gap is now shaping whether a deal gets locked in or left to move with the market.

Upton Sees a 0.75% Gap

Three quarters of a percent is the spread Simon Upton says can open up between tracker rates and fixed rates. He said: "There can be anything up to three quarters of a percent difference between the tracker rate and the fixed rate. So you've got a sense of security there that, well, okay, base rate's got to move three times. Assuming a 0.25 rise each time, it's got to rise three times before it gets to the fixed rate equivalent today."

4.72% was the average two-year fixed rate at 60% LTV, while the best five-year fix was 4.35%. Against that backdrop, tracker pricing remains materially lower than comparable fixed deals, which is why the rate decision leaves advisers weighing security against the possibility of further cuts later.

Springall Says Borrowers Wait

8–1 was the Monetary Policy Committee vote to hold Bank Rate, with one member instead voting for 4%. That split followed CPI inflation at 3.3% in the year to March 2026, a reading that keeps the policy path from looking settled and leaves mortgage pricing tied to each new signal from the Bank of England.

Rachel Springall said: "Borrowers have been left in limbo as it is difficult to know whether they should rush to lock into a fixed deal or wait and see if lenders make more sizeable cuts." She added: "Unfortunately, the outlook on interest rates remains uncertain, so mortgage holders coming off a cheap fixed rate will have to cover higher repayments this year, which will be incredibly frustrating. It is still worth moving off an expensive revert rate, as borrowers could save almost £2,500 a year moving onto a fixed rate deal."

1.8 Million Borrowers in 2026

1.8 million borrowers will be in front of advisers in 2026 alone, putting the next wave of remortgaging squarely on pricing. If tracker discounts stay close to fixed-rate gaps, the advice problem becomes a timing call: pay more for certainty now, or wait for lenders to cut further and risk missing a better deal.

2026 is already shaping up as a year when small rate moves will matter in pounds, not just basis points (hundredths of a percent). For borrowers coming off expensive revert rates, the most practical step is to compare the current fixed quote against the tracker spread before rates move again.