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Bank of England policymakers divided over inflation risk facing UK

ended 15. October 2026

According to Bloomberg, Bank of England policymakers are said to be divided over whether rates need to rise to stop the latest energy-price shock feeding into persistent inflation.

Questions asked of experts:

  • What are you seeing from lenders since this talk began: repricing, deals pulled, shorter offer windows?
  • How are clients reacting? Are you seeing people rush to lock in, delay purchases or switch to trackers? Give us a specific example if you can.
  • Which borrowers are most exposed right now, and what are you advising them to do?

3 responses from the Newspage community

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Nouran MoustafaVerified
Practice Principal & IFA at Roxton Wealth
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The mortgage market is nervous, but it is not panicking.

We have seen lenders reprice upwards as funding costs rose, yet this week HSBC and NatWest have cut selected rates again. That tells you how finely balanced things are: inflation is pushing one way, lender competition is pushing the other.

For borrowers, I would not gamble on guessing the next Bank of England move. If you are buying or remortgaging, secure a suitable deal now and keep reviewing it before completion. If rates improve, you may be able to switch. If they deteriorate, at least you protected yourself.

The most exposed are borrowers coming off cheap fixes, higher-LTV buyers and anyone whose affordability is already tight.

Mortgage rates move on expectations long before the Bank actually votes. Waiting for certainty can be expensive.
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Stephen PerkinsVerified
Norwich Mortgage Broker and Managing Director at Yellow Brick Mortgages
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A divided Bank of England does not mean borrowers should assume another rate rise is coming. Fixed mortgage rates move on market expectations and funding costs, which is why lenders can raise rates one week and trim them again the next.

For borrowers, volatility matters more than trying to predict the next vote. Anyone nearing the end of a deal should secure a suitable option now, then keep it under review if pricing improves.
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Tony RedondoVerified
Founder at Cosmos Currency Exchange
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August’s UK inflation rate rose to 3.1%, 55% above the Bank of England’s 2% target, leaving the Bank between a rock and a hard place. Policymakers are split on whether to lift the base rate from 3.75% to put a lid on this latest spike, at the risk of choking an anaemic economy. That tug-of-war is feeding money-market volatility and has killed off any expectation of rate cuts this year. Lenders are repricing upward by 15 to 35 basis points, withdrawal windows have shrunk to as little as 8 to 24 hours, and specialist and buy-to-let lenders are pulling deals overnight as stress tests tighten. Borrowers are moving fast: homeowners within six months of expiry are rushing to lock in forward product transfers, while tracker demand has stalled as buyers shun unhedged variable risk. Most exposed: landlord portfolios, high-LTV buyers facing strict stress tests, and anyone coming off a legacy sub-2% fixed deal onto a high variable rate.