Bank of England base rate changes

On Thursday 18 December 2025, the Bank of England announced a decrease in its base rate from 4% to 3.75%.

Tracker mortgage

We'll be decreasing tracker rate mortgages indexed to the base rate by 0.25% from 1 February 2026, in line with existing terms and conditions.

Managed rates*

We're working through what this means for managed rates and other variable rates and we'll update our website in due course.

Fixed mortgage

If your client is on a fixed rate mortgage, nothing will change as a result of the base rate change. The interest rate and monthly payments stay the same until the end of the fixed deal.

*The Mortgage Works managed rate is a variable rate with no upper limit or cap and isn't tied to the Bank of England base rate. It will change to reflect changes in general interest rates, the law, regulation and changes in our costs. You can find the managed rate on the product selection screen and in your client's offer.