BBR hold irrelevant as damage already done to savers

Rachel Springall, Finance Expert 01603 476210 Email Rachel

BBR hold irrelevant as damage already done to savers

Since the start of 2026, more than 70% of savings providers have cut rates, but mortgage rate cuts may be slowing in the weeks ahead, according to Moneyfactscompare.co.uk analysis.

More than two thirds (70%) of savings providers have cut rates since the start of 2026, showing the impact of cuts to the Bank of England Base Rate (BBR) and uncertainty on the future of interest rate pricing.
The real returns on variable rate savings accounts continue to deteriorate, with the average easy access and cash ISA equivalent rate paying less than 3%, below CPI.
Despite a cut of 0.25% to BBR in December, mortgage rate moves have not fallen by similar margins. They are more in tune to swap rate moves and borrowers locked into a fixed rate will not benefit. Over recent weeks, swap rates have been on the rise. Those sitting on a standard variable rate (SVR) would see the biggest incentive to refinance, saving over £4,200 over a year by locking into a fixed rate deal*.
Consumer confidence in the UK has been negative or flat for 10 consecutive years, with the last positive headline in January 2016, as reported by The Money Charity.
Almost half (45%) of consumers are not confident their financial situation will improve over the next five years, according to LV=. Among these, almost a quarter (23%) cite insufficient savings or pension provision as the main reason.

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:

“Economists do not predict another BBR cut until March or April, citing a weakening labour market and sticky inflation as the cause for a more cautious approach to rate setting. The UK is expecting subdued growth this year, and with the outlook for the economy looking fragile, it may be unsurprising to know that consumers are not feeling confident with their financial situation. It is still essential to have a healthy nest egg to help cover any emergencies, and while savings rates may be doomed to fall further in 2026, it’s uncertain how far they could tumble and how soon. However, any split between the Monetary Policy Committee (MPC) vote could give us a clue on when we may expect to see a cut in 2026, so savers should prepare themselves. It is also worth reminding homeowners that 1% has been shaved off BBR over the past 12 months, so if they are on standard variable rate (SVR) deal, a 0.25% cut saves around £40 per month, but moving onto a fixed rate deal could save around £350 per month*.”

BBR hold irrelevant as damage already done to savers

Since the start of 2026, more than 70% of savings providers have cut rates, but mortgage rate cuts may be slowing in the weeks ahead, according to Moneyfactscompare.co.uk analysis.

More than two thirds (70%) of savings providers have cut rates since the start of 2026, showing the impact of cuts to the Bank of England Base Rate (BBR) and uncertainty on the future of interest rate pricing.
The real returns on variable rate savings accounts continue to deteriorate, with the average easy access and cash ISA equivalent rate paying less than 3%, below CPI.
Despite a cut of 0.25% to BBR in December, mortgage rate moves have not fallen by similar margins. They are more in tune to swap rate moves and borrowers locked into a fixed rate will not benefit. Over recent weeks, swap rates have been on the rise. Those sitting on a standard variable rate (SVR) would see the biggest incentive to refinance, saving over £4,200 over a year by locking into a fixed rate deal*.
Consumer confidence in the UK has been negative or flat for 10 consecutive years, with the last positive headline in January 2016, as reported by The Money Charity.
Almost half (45%) of consumers are not confident their financial situation will improve over the next five years, according to LV=. Among these, almost a quarter (23%) cite insufficient savings or pension provision as the main reason.

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:

Savings market analysis

Since the start of 2026, more than two thirds (70%) of savings providers have cut their rates, considering both variable and fixed rates (1 January – 2 February 2026).
Year-on-year average rates across easy access and notice accounts have fallen, with the average easy access rate down from 2.92% to 2.42%, and the average easy access ISA rate down from 3.06% to 2.60%. The average notice account has fallen from 4.00% to 3.37% and the average notice ISA rate has fallen from 3.92% to 3.23%.
Savers who expect rates to continue dropping may wish to secure their cash for a guaranteed return, but they may wish to act quickly. Fixed rates have been on the downward trend over the past 12 months, one- and five-year fixed bond and ISA rates sit below 4% on average, as providers lowered rates in response to BBR cuts and wider market movements for setting future interest rates.
The Moneyfacts Average Savings Rate has fallen over the past 12 months to 3.31%, its lowest point since May 2023 (3.20%). The rate was last above 4% in January 2024 (4.04%). This means, overall, savers are losing money in real terms as inflation is higher.

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:

“The slaughter of savings rates will sadden hard-pressed savers. Since the start of this year, more than two thirds (70%) of savings providers have cut their rates. Any delay in further interest rate cuts by the Bank of England is irrelevant, there has already been irreversible damage done to the savings market over the last 12 months. As inflation remains well above target, real returns on cash savings are weak and this can lead to a dangerous attitude of apathy.

“Consumers already feel worried about their financial future, and falling interest rates will not inspire them to prioritise their savings pots. It will be too easy to just leave it languishing in an account with their high street bank that pays a paltry rate, assuming there is nothing better to move it to, but others might not even move their disposable income out of their current account. More than three-quarters (84%) of easy access accounts on sale pay less than 3.75%, so it may come as no surprise to find very few now pay more than 4%. The Government may be on the campaign trail to encourage investing, but savers who want a risk-free pot shouldn’t be forgotten. Savers should be made to feel empowered to regularly review and switch to better returns, such as those on offer from building societies and challenger banks.

“The demise of savings rates is clear for those who prefer to have quick access to their cash. A year ago, savers could scrape an average return of 2.92% on an easy access account, that’s now down to 2.42%, the cash ISA equivalent has seen a similar drop from 3.06% to 2.60%; they both sit at their lowest levels since July 2023. The guaranteed returns offered on a one-year fixed bond has also been impacted by the 1% shaven off BBR over the past 12 months and the unsettled future of more cuts to BBR, the average return of just 3.81% on a one-year bond is at a three-year low. However, one speckle of positivity remains in the returns on offer from a five-year fixed bond or ISA, which have been more resilient over the past year. Those who locked into a bond back in February 2021 can now earn three times more interest on average, either in a fixed bond or ISA. However, a cash ISA may be a preferred choice due to those who need to shield their returns from tax due to fiscal drag.”

Savings market analysis
Average savings rates	Feb-21	Feb-24	Feb-25	Aug-25	Jan-26	Feb-26
Easy access	0.17%	3.17%	2.92%	2.68%	2.50%	2.42%
Notice account	0.38%	4.30%	4.00%	3.63%	3.44%	3.37%
One-year fixed bond	0.47%	4.62%	4.21%	4.01%	3.85%	3.81%
Five-year fixed bond	0.87%	3.88%	3.93%	3.91%	3.85%	3.86%
Easy access ISA	0.25%	3.30%	3.06%	2.90%	2.70%	2.60%
Notice ISA	0.40%	4.16%	3.92%	3.49%	3.34%	3.23%
One-year fixed ISA	0.42%	4.51%	4.08%	3.96%	3.79%	3.76%
Five-year fixed ISA	0.85%	3.83%	3.86%	3.84%	3.80%	3.82%
Averages based on £10,000 gross rate. Average rates shown are as at the first available day of the month, unless stated otherwise. Source: Moneyfactscompare.co.uk

Moneyfacts Average Savings Rate
	Feb-21	Feb-24	Feb-25	Aug-25	Jan-26	Feb-26
Moneyfacts Average Savings Rate	0.42%	3.91%	3.69%	3.50%	3.35%	3.31%
Calculated from the total of all on-sale, core market, variable and fixed rate savings accounts and Cash ISAs. Standard exclusions apply: Regular savings, children’s accounts, LISAs and JISAs.
Source: Moneyfacts Average Savings Rate.

Savings market analysis

Since the start of 2026, more than two thirds (70%) of savings providers have cut their rates, considering both variable and fixed rates (1 January – 2 February 2026).
Year-on-year average rates across easy access and notice accounts have fallen, with the average easy access rate down from 2.92% to 2.42%, and the average easy access ISA rate down from 3.06% to 2.60%. The average notice account has fallen from 4.00% to 3.37% and the average notice ISA rate has fallen from 3.92% to 3.23%.
Savers who expect rates to continue dropping may wish to secure their cash for a guaranteed return, but they may wish to act quickly. Fixed rates have been on the downward trend over the past 12 months, one- and five-year fixed bond and ISA rates sit below 4% on average, as providers lowered rates in response to BBR cuts and wider market movements for setting future interest rates.
The Moneyfacts Average Savings Rate has fallen over the past 12 months to 3.31%, its lowest point since May 2023 (3.20%). The rate was last above 4% in January 2024 (4.04%). This means, overall, savers are losing money in real terms as inflation is higher.

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:

Savings market analysis
Average savings rates	Feb-21	Feb-24	Feb-25	Aug-25	Jan-26	Feb-26
Easy access	0.17%	3.17%	2.92%	2.68%	2.50%	2.42%
Notice account	0.38%	4.30%	4.00%	3.63%	3.44%	3.37%
One-year fixed bond	0.47%	4.62%	4.21%	4.01%	3.85%	3.81%
Five-year fixed bond	0.87%	3.88%	3.93%	3.91%	3.85%	3.86%
Easy access ISA	0.25%	3.30%	3.06%	2.90%	2.70%	2.60%
Notice ISA	0.40%	4.16%	3.92%	3.49%	3.34%	3.23%
One-year fixed ISA	0.42%	4.51%	4.08%	3.96%	3.79%	3.76%
Five-year fixed ISA	0.85%	3.83%	3.86%	3.84%	3.80%	3.82%
Averages based on £10,000 gross rate. Average rates shown are as at the first available day of the month, unless stated otherwise. Source: Moneyfactscompare.co.uk

Moneyfacts Average Savings Rate
	Feb-21	Feb-24	Feb-25	Aug-25	Jan-26	Feb-26
Moneyfacts Average Savings Rate	0.42%	3.91%	3.69%	3.50%	3.35%	3.31%
Calculated from the total of all on-sale, core market, variable and fixed rate savings accounts and Cash ISAs. Standard exclusions apply: Regular savings, children’s accounts, LISAs and JISAs.
Source: Moneyfacts Average Savings Rate.

Mortgage rate path uncertain as swap rates rise

Mortgage market analysis

Over the past few weeks, swap rates have been on the rise, and as a result, lenders may be more cautious with their rate pricing, with some already increasing rates over the past few days, such as HSBC, NatWest and Santander.
Year-on-year average mortgage rates across the two-, five and 10-year fixed terms are down to 4.85%, 4.94% and 5.60% respectively.
The Bank of England Base Rate was cut to 3.75% in December 2025, but the 0.25% cut has not been mirrored by average mortgage rates. The average standard variable rate (SVR) has fallen by 0.10%, from 7.25% to 7.15% since the start of December 2025. Since the start of February 2025 up to the start of this month, 1% has been shaved off BBR, but only 0.63% has dropped off the average SVR.
The Moneyfacts Average Mortgage Rate has fallen over the last 12 months to 4.90%. The rate has been below 5% since the start of November 2025.

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:

“Borrowers looking to refinance will be encouraged to see fixed rates drop over recent months, but wider market uncertainty is starting to impact mortgage rate setting. Swap rates have been on the rise over recent weeks, which can lead to a pause in any substantial cuts by lenders. Some lenders may even increase rates, such as those who priced a bit too low last month, so now is a great time for borrowers to secure a low-rate deal if they need to refinance. Remortgage customers stand to benefit the most from refinancing this year, coming off the average standard variable rate (SVR), they could save around £350 per month* on their mortgage repayments, which is around £4,200 over 12 months.

“First-time buyers may be feeling much more positive about getting their first foot on the property ladder this year, with stress test relaxation and falling rates, but more affordable housing would really be a game changer. Those looking to buy right now will find many lenders, such as building societies, offering a selection of innovative products aimed at those with a very small deposit, or those relying on their sole income to get a mortgage. However, The Money Charity has estimated that it takes 11 years for first-time buyers to build a big enough deposit, so they may also need to take out a longer mortgage term to reduce their monthly repayments. However, if they can afford to overpay their mortgage, it will help in the long run. A regular overpayment of £200 per month on a £250,000 mortgage can shave almost 13 years off a 40-year term, and save more than £118,000, based on the Moneyfacts Average Mortgage Rate of 4.90%.

“The bad news this year will come to those who are coming off a cheap fixed rate mortgage from five years ago. While many could refinance up to six months in advance of their deal ending with their existing lender, seeking advice would be a wise choice to navigate other options across the mortgage maze. Borrowers will find the average rate on a five-year fixed mortgage is more than 2% higher than back in February 2021, when BBR was just 0.10%, so such cheap mortgages could not be sustainable. The mortgage market needs stability and innovation to support borrowers, such as modernising regulation, one of the key themes to be reviewed by the Financial Conduct Authority, laid out in its ‘Roadmap’ for the mortgage market.”

*Average standard variable rate (SVR) is currently 7.15%. Calculations based on a £250,000 mortgage over a 25-year term on a repayment basis. SVR repayment £1,790 per month, versus £1,439 per month on 4.85% two-year fixed rate.

Mortgage market analysis
Average mortgage rates	Feb-21	Feb-24	Feb-25	Aug-25	Jan-26	Feb-26
Standard variable rate (SVR)	4.41%	8.17%	7.78%	7.42%	7.25%	7.15%
Two-year fixed mortgage	2.53%	5.56%	5.52%	5.01%	4.83%	4.85%
Five-year fixed mortgage	2.73%	5.18%	5.32%	5.01%	4.91%	4.94%
10-year fixed mortgage	2.85%	5.87%	5.65%	5.60%	5.60%	5.60%
Average rates shown are as at the first available day of the month, unless stated otherwise. Source: Moneyfactscompare.co.uk

Moneyfacts Average Mortgage Rate
	Feb-21	Feb-24	Feb-25	Aug-25	Jan-26	Feb-26
Moneyfacts Average Mortgage Rate	2.65%	5.46%	5.45%	5.04%	4.87%	4.90%
Calculated from the total of all on-sale, core market, fixed and variable tracker mortgages. Standard exclusions apply: Self-build only, shared ownership only, new build only, shared equity only, standard variable rates and adverse credit.
Source: Moneyfacts Average Mortgage Rate.

Mortgage rate path uncertain as swap rates rise

Mortgage market analysis

Over the past few weeks, swap rates have been on the rise, and as a result, lenders may be more cautious with their rate pricing, with some already increasing rates over the past few days, such as HSBC, NatWest and Santander.
Year-on-year average mortgage rates across the two-, five and 10-year fixed terms are down to 4.85%, 4.94% and 5.60% respectively.
The Bank of England Base Rate was cut to 3.75% in December 2025, but the 0.25% cut has not been mirrored by average mortgage rates. The average standard variable rate (SVR) has fallen by 0.10%, from 7.25% to 7.15% since the start of December 2025. Since the start of February 2025 up to the start of this month, 1% has been shaved off BBR, but only 0.63% has dropped off the average SVR.
The Moneyfacts Average Mortgage Rate has fallen over the last 12 months to 4.90%. The rate has been below 5% since the start of November 2025.

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:

Mortgage market analysis
Average mortgage rates	Feb-21	Feb-24	Feb-25	Aug-25	Jan-26	Feb-26
Standard variable rate (SVR)	4.41%	8.17%	7.78%	7.42%	7.25%	7.15%
Two-year fixed mortgage	2.53%	5.56%	5.52%	5.01%	4.83%	4.85%
Five-year fixed mortgage	2.73%	5.18%	5.32%	5.01%	4.91%	4.94%
10-year fixed mortgage	2.85%	5.87%	5.65%	5.60%	5.60%	5.60%
Average rates shown are as at the first available day of the month, unless stated otherwise. Source: Moneyfactscompare.co.uk

Moneyfacts Average Mortgage Rate
	Feb-21	Feb-24	Feb-25	Aug-25	Jan-26	Feb-26
Moneyfacts Average Mortgage Rate	2.65%	5.46%	5.45%	5.04%	4.87%	4.90%
Calculated from the total of all on-sale, core market, fixed and variable tracker mortgages. Standard exclusions apply: Self-build only, shared ownership only, new build only, shared equity only, standard variable rates and adverse credit.
Source: Moneyfacts Average Mortgage Rate.

Notes to editors

You are welcome to use part or all of this press release, so long as we are sufficiently sourced. We would appreciate a link back to Moneyfactscompare.co.uk.

Pioneering financial comparison technology for over 35 years, Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

Notes to editors

You are welcome to use part or all of this press release, so long as we are sufficiently sourced. We would appreciate a link back to Moneyfactscompare.co.uk.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, banking, life, pension and investment products in the UK.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

If you're looking for extra comment, a chart or more information, then please give us a call. We are always more than happy to help.

Adam French Head of Consumer Finance

01603 476154

Email Adam

Rachel Springall Finance Expert

01603 476210

Email Rachel

Caitlyn Eastell Personal Finance Analyst