UK new mortgage rates climb to 4.63% in September; deposit rates rise too

Victoria Shinder31 October 2026, 10:431 min read

The average interest rate on newly drawn UK mortgages rose to 4.63% in September from 4.60% in August, according to the Bank of England's effective interest rate statistics published on 29 October. It was the third monthly increase in a row: the rate had been 4.35% in June and 4.45% in July.

Savers saw the other side of the same move. New fixed-term deposits from households earned 4.42% on average, up from 4.24% in August and the highest of the four months shown. Rates on the outstanding stock moved more slowly, as they always do: households' sight deposits paid 1.66%, time deposits 3.44% and the stock of secured loans cost 4.03%, all edging up by a few hundredths of a point. New consumer loans, such as personal loans and car finance, were the exception, easing to 9.85% from 9.96%, while the rate on the outstanding stock of such borrowing rose to 9.11%.

For businesses, the effective rate on new loans to private non-financial companies fell to 5.47% from 5.57%, while new time deposits paid 3.52%. The figures are not seasonally adjusted and cover banks and building societies. The Bank now publishes the commentary on these rates inside its Money and Credit release; the next data are due on 30 November.

What it means

Rising rates on both new mortgages and new savings point in the same direction: lenders are pricing in a higher Bank Rate path. Lenders reprice new products as soon as their own funding costs move, well before any change in Bank Rate shows up in the stock of loans. For households refinancing this autumn, the gap between the 4.03% average on existing mortgages and 4.63% on new ones is a measure of the payment shock still to come.