The Bank of England held Bank Rate at 3.75% in September 2026, but three of the nine members of the Monetary Policy Committee voted to raise it. For property investors and developers using short-term finance, the decision matters less for its headline number than for what it signals about the cost of the long-term finance many bridging loans rely on as an exit.
In short: On 17 September 2026 the Monetary Policy Committee voted 6–3 to keep Bank Rate at 3.75%, with three members preferring an increase to 4%. CPI inflation was 3.1% in August and the Bank expects it to rise to around 3¾% in the final quarter of 2026. The next decision is due on 5 November 2026.
What did the Bank of England decide?
According to the September 2026 Monetary Policy Summary, six members voted to hold Bank Rate at 3.75%. Three members, Megan Greene, Catherine L Mann and Huw Pill, voted to raise it by 0.25 percentage points to 4%.
The Committee pointed to higher energy prices linked to the conflict in the Middle East and said the risks to the inflation outlook are tilted to the upside. The majority judged that a softer labour market and tight financial conditions were restraining inflation. The minority argued that the risk of second-round effects on wages and prices was growing.
What does a split vote tell the property market?
A 6–3 vote with the minority favouring a rise is a signal that the next move is not settled. The Bank expects CPI inflation to rise to around 3¾% in the fourth quarter of 2026 and slightly above 4% in the first quarter of 2027. Markets and lenders will watch inflation and wage data closely before the 5 November meeting.
For the property market, that uncertainty tends to show up in mortgage pricing before it shows up in Bank Rate itself. Fixed-rate mortgage pricing is influenced by swap rates, which move on expectations of future policy, not only on the current rate.
How does Bank Rate affect bridging finance?
Bridging loans are short-term facilities, usually priced as a monthly rate that each lender sets for the individual transaction. They do not track Bank Rate automatically. Two links to the wider rate environment are still worth understanding:
- The exit. Many bridges are repaid by refinancing onto a term mortgage or buy-to-let loan. If long-term borrowing costs rise, the affordability tests for that exit become harder to meet, and the refinance may produce a smaller loan than planned.
- Timing. Interest on a bridge accrues for as long as the loan is outstanding. Delays to an exit, whether caused by a valuation, legal work or a change in lending conditions, add cost.
For an explanation of how monthly bridging pricing and fees combine, see our guide to bridging loan rates and costs in the UK.
What should borrowers consider before the November decision?
- Test the planned exit against a range of term-finance rates, not only today’s pricing.
- Allow a margin of time in the bridging term for valuation, legal work and refinance underwriting.
- Understand the full cost of the facility, including fees, and how interest is charged or retained.
- Take independent advice where a transaction depends on future refinancing.
Our article on the bridging loan exit strategy sets out why the exit is central to any short-term facility.
Frequently asked questions
What is the current Bank of England base rate?
Bank Rate was held at 3.75% at the Monetary Policy Committee decision announced on 17 September 2026.
When is the next Bank of England rate decision?
The next Monetary Policy Committee decision is scheduled for 5 November 2026.
Do bridging loan rates follow Bank Rate?
Bridging loans are usually priced as a monthly rate set by each lender for the individual deal, so they do not move automatically with Bank Rate. Funding costs and the cost of the long-term finance used as an exit can, however, be influenced by the wider rate environment.
Source: Bank of England, Monetary Policy Summary and minutes, September 2026.
Important information
Ponte Finance PLC is a private lender, not a bank, and is not authorised or regulated by the Financial Conduct Authority. Lending is for business purposes only and is not available to consumers or for property occupied, or to be occupied, by the borrower or a family member as a home. All loans are secured against property, and the property may be repossessed if repayments are not maintained. This article is for general information only and reflects publicly available data at the date of publication. It does not constitute an offer of finance, a forecast, or financial, investment, tax or legal advice. Ponte Finance PLC is registered in England and Wales, company number 15859004, registered office 225 Clapham Road, London SW9 9BE.