The Monday After: Why Mortgage Rates Are Rising Despite the Base Rate Hold

The Hold That Did Not Help

Last Thursday, the Bank of England’s Monetary Policy Committee voted to maintain the Base Rate at 3.75 percent. For many homeowners, a hold usually signals stability. However, the market has not stood still over the last 72 hours.

As of this Monday afternoon, several major high street lenders have already pushed their fixed rate products higher. Some of these increases are as significant as 0.35 percent. If you were waiting for Thursday’s decision to bring mortgage rates down, today’s market activity is a clear wake-up call. The reality of March 2026 is that the Base Rate is no longer the only factor driving your mortgage costs.

Why Is This Happening Today?

While the Bank of England stayed quiet, global energy markets did not. Rising oil prices over the weekend have pushed swap rates to their highest levels since last year. Swap rates represent the wholesale cost of lending for banks.

Lenders are not just looking at what happened last week. Instead, they are pricing in the risk of higher inflation throughout this summer. This is why a hold at the Bank of England can still feel like a hike at your local branch. For a £250,000 mortgage, today’s price shifts could add roughly £70 to £90 a month to your repayments compared to just a few weeks ago.

If you are worried about how these rising costs will affect your budget, see our checklist on How to Cope with Higher Payments When Your Mortgage Deal Ends.

The 180-Day Safety Net

The biggest mistake borrowers make in a volatile market is waiting for the bottom. In 2026, that bottom is a moving target. The most effective strategy right now is to utilize the 180-day rule.

Most lenders allow you to secure a mortgage rate up to six months before your current deal expires. By locking in a rate today, you create a ceiling on your costs. If rates miraculously drop by July, we can switch you to a better deal before you complete. If they keep climbing, you are already protected.

Unsure if you should wait or pay an exit fee to move now? Read: Remortgaging Early: Is it Worth the Penalty?.

A Critical Note for Company Directors

For business owners and contractors, today’s rate volatility makes standard lending even harder to navigate. High street banks often tighten their affordability calculators the moment swap rates tick upward.

If you are a director, you should not just rely on your salary and dividends. By presenting your retained profits, we can often secure larger loans or better rate tiers that high street automation would otherwise miss.

Learn how to structure your income correctly: Retained Profits vs. Dividends: Which is Better for Your Mortgage?.

Your Monday Afternoon Action Plan

1. Stop monitoring the Base Rate. It is a lagging indicator that does not reflect today’s lender pricing.
2. Lock in a safety net. If your deal ends before September 2026, contact your broker this afternoon.
3. Prioritize strategy. In a higher for longer environment, the value of specialist advice is at its peak.