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FMF Analysis · Interest rates

What interest rates mean for you

The Bank of England sets one rate. It feeds through to your mortgage, your savings and your overdraft at very different speeds. Everything below is real Bank of England data: what has happened, and what things cost today. We don't forecast, and we'll show you why nobody honestly can.

Data to June 2026 · Bank Rate to December 2025 decision
Bank Rate now
Avg new mortgage
rate actually paid, Jun 2026
Easy-access savings
average rate paid, Jun 2026

50 years of Bank Rate

Every rate decision since 1975 on one line. If today's rates feel high, this is the chart that puts them in their place.

The rate cycle, from both sides

When the Bank moves, mortgage rates follow fast. Savings rates follow later, and by less. Watch the gap.

What your deposit buys you

Bigger deposit, cheaper mortgage. Here is the average rate in June 2026 for each deposit size, and what that rate means in pounds every month on a typical £200,000 mortgage over 25 years.

Your remortgage, in pounds

Enter your mortgage as it is now. We show what the monthly payment looks like at today's average quoted rate for your deposit and fix length, then let you test any rate you like. Repayment mortgage assumed. This is arithmetic on published averages, not a quote and not advice.

Your payment now
At today's average rate

Test any rate

Nobody can tell you where rates will be when your fix ends. Drag the slider and see what different worlds cost you. You choose the number, not us.

4.50%

Illustration only, not financial advice. Assumes a repayment mortgage with the quoted rate held for the whole remaining term; real fixes revert to other rates when they end, and fees are excluded. Rates are market-wide averages, so your quotes will differ.

What happens next? Honestly: nobody knows

⚠️  Illustrations, not forecasts

Two views from the Bank of England's April 2026 report. Financial markets were pricing Bank Rate to rise to about 4.2% in early 2027, then ease to 4% by early 2028. The Bank's own survey of market participants expected the opposite: a fall to 3.5% within a year and 3.25% after that. When the professionals point in opposite directions, a confident forecast would be a lie. That's why the calculator above has a slider instead.

~£80
expected rise in average monthly mortgage payments over the next three years (Bank of England projection, Apr 2026)
53%
of UK mortgage holders expected to see payments rise (Bank of England, Apr 2026)
~25%
of those who fixed at higher rates expected to see payments fall (Bank of England, Apr 2026)

Your overdraft doesn't care

Some borrowing tracks the Bank of England. Some never comes down. Since 2000, Bank Rate has gone from 5.75% to 3.75%, while the average overdraft rate has nearly doubled.