The interest rates of most types of personal loans in the United Kingdom (UK) have increased slightly in 2024. However, the interest rates applied to personal loans of 3,000 British pounds were slightly lower than in the previous year, amounting to ***** percent. Smaller personal loans had, in general, higher interest rates than bigger loans.

Graph and download economic data for Household Personal Loan Rate in the United Kingdom (HPLRUKQ) from Q1 1970 to Q4 2016 about academic data, United Kingdom, loans, personal, households, and rate.

In 2026, the United Kingdom’s monetary policy continued to ease, with the Bank of England implementing rate cuts over the course of the year. The final cut reduced the Bank Rate to **** percent, reinforcing the shift toward a less restrictive policy stance as inflationary pressures moderated. This easing followed an initial policy pivot in August 2024, when the Bank of England lowered the official bank rate to * percent, marking the first rate cut since the previous year. Earlier, in response to the economic effects of the COVID-19 pandemic, the Bank of England had reduced the Bank Rate to a historic low of *** percent in March 2020 - just one week after an emergency cut from **** percent to **** percent aimed at preventing widespread job losses. The rate remained at *** percent until December 2021, before rising to * percent in May 2022 and to **** percent in October 2022. Thereafter, the Bank Rate increased almost monthly, reaching **** percent in August 2023, where it remained until the first reduction in August 2024 signaled a turning point in UK monetary policy. Why do central banks adjust interest rates? Central banks, including the Bank of England, adjust interest rates to manage economic stability and control inflation. Their strategies involve a delicate balance between two main approaches. When central banks raise interest rates, their goal is to cool down an overheated economy. Higher rates curb excessive spending and borrowing, which helps to prevent runaway inflation. This approach is typically used when the economy is growing too quickly or when inflation is rising above desired levels. Conversely, when central banks lower interest rates, they aim to encourage borrowing and investment. This strategy is employed to stimulate economic growth during periods of slowdown or recession. Lower rates make it cheaper for businesses and individuals to borrow money, which can lead to increased spending and investment. This dual approach allows central banks to maintain a balance between promoting growth and controlling inflation, ensuring long-term economic stability. Additionally, adjusting interest rates can influence currency values, impacting international trade and investment flows, further underscoring their critical role in a nation's economic health. Recent interest rate trends Between 2021 and 2026, most advanced and emerging economies experienced a period of regular interest rate hikes. This trend was driven by several factors, including persistent supply chain disruptions, high-energy prices, and robust demand pressures. These elements combined to create significant inflationary trends, prompting central banks to raise rates to temper spending and borrowing. However, in 2024, a shift began to occur in global monetary policy. The European Central Bank (ECB) was among the first major central banks to reverse this trend by cutting interest rates. This move signaled a change in approach aimed at addressing growing economic slowdowns and supporting growth.

Context

The UK mortgage interest rate dataset offers a comprehensive snapshot of the mortgages rates on offer in the UK across time.

Content

This dataset spans from January 1999 to October 2023, providing a comprehensive and longitudinal perspective on the evolution of mortgage rates in the United Kingdom.

This dataset includes the the interest rate time series for the following rates:

• Fixed rates with 95% Loan-to-Value
• Fixed rates with 75% Loan-to-Value
• Tracker rates
• Standard variable rates
• Bank rate
• LIBOR & Goverment Bonds

Links

This data has been sourced from the Building Societies Association website: https://www.bsa.org.uk/statistics/

The benchmark interest rate in the United Kingdom was last recorded at 3.75 percent. This dataset provides - United Kingdom Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

United Kingdom UK: Real Interest Rate data was reported at -1.195 % pa in 2014. This records an increase from the previous number of -1.378 % pa for 2013. United Kingdom UK: Real Interest Rate data is updated yearly, averaging 1.802 % pa from Dec 1967 (Median) to 2014, with 48 observations. The data reached an all-time high of 6.438 % pa in 1985 and a record low of -12.172 % pa in 1975. United Kingdom UK: Real Interest Rate data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s United Kingdom – Table UK.World Bank.WDI: Interest Rates. Real interest rate is the lending interest rate adjusted for inflation as measured by the GDP deflator. The terms and conditions attached to lending rates differ by country, however, limiting their comparability.; ; International Monetary Fund, International Financial Statistics and data files using World Bank data on the GDP deflator.; ;

United Kingdom UK: Lending Interest Rate data was reported at 0.500 % pa in 2014. This stayed constant from the previous number of 0.500 % pa for 2013. United Kingdom UK: Lending Interest Rate data is updated yearly, averaging 6.963 % pa from Dec 1967 (Median) to 2014, with 48 observations. The data reached an all-time high of 16.313 % pa in 1980 and a record low of 0.500 % pa in 2014. United Kingdom UK: Lending Interest Rate data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s United Kingdom – Table UK.World Bank.WDI: Interest Rates. Lending rate is the bank rate that usually meets the short- and medium-term financing needs of the private sector. This rate is normally differentiated according to creditworthiness of borrowers and objectives of financing. The terms and conditions attached to these rates differ by country, however, limiting their comparability.; ; International Monetary Fund, International Financial Statistics and data files.; ;

Interest rates in the UK spiked in 2022 and 2023, with the average rate for new mortgage advances to individuals and individual trusts rising by **** percentage points between January 2022 and January 2024. Mortgages on a floating interest rate were the most expensive as of January 2024, at **** percent. On the other hand, the average rate for new advances with a five-year fixed rate was **** percent.

Graph and download economic data for Household Personal Loan Rate in the United Kingdom (HPLRUKM) from Jan 1970 to Jan 2017 about academic data, United Kingdom, loans, personal, households, and rate.

The effective fixed interest rate of new consumer credit in the United Kingdom (UK) reached *** percent in June 2025. Since July 2020, interest rates for secured and unsecured loans soared, but they started falling again in the second half of 2024. In 2024, the average interest rates of personal loans in the UK varied significantly depending on the size of the loan.

The effective floating interest rate of outstanding consumer credit (not including overdraft) in the United Kingdom was over **** percent in June 2025. The floating rate for secured loans and unsecured consumer lending was **** percent.

Key information about United Kingdom Long Term Interest Rate

• United Kingdom Long Term Interest Rate: Month End: United Kingdom: Government Bond Yield: 10 Years was reported at 4.94 % pa in Mar 2026, compared with 4.35 % pa in the previous month.
• UK Long Term Interest Rate data is updated monthly, available from Jan 1979 to Mar 2026.
• The data reached an all-time high of 15.44 % pa in Sep 1981 and a record low of 0.13 % pa in Jul 2020.
• Long Term Interest Rate is reported by reported by CEIC Data.

• In the latest reports, UK Short Term Interest Rate: Month End: ICE LIBOR: 3 Months was reported at 0.09 % pa in Apr 2021.
• The cash rate (Policy Rate: Month End: Base Rate) was set at 3.75 % pa in Mar 2026.
• UK Exchange Rate against USD averaged 0.75 (USD/GBP) in Oct 2025.

Bank Lending Rate in the United Kingdom increased to 9.07 percent in February from 8.97 percent in January of 2026. This dataset provides - United Kingdom Prime Lending Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

View monthly updates and historical trends for UK Long-Term Interest Rates. from United Kingdom. Source: Organisation for Economic Co-operation and Develo…

Graph and download economic data for Corporate Borrowing Rate on Loans from Banks in the United Kingdom (CBRLBUKQ) from Q2 1977 to Q4 2016 about borrowings, academic data, United Kingdom, corporate, loans, banks, depository institutions, and rate.

Graph and download economic data for Interest Rates, Discount Rate for United Kingdom (INTDSRGBM193N) from Jan 1959 to Mar 2013 about United Kingdom, interest rate, interest, and rate.

In 2022, the average interest rate for loans to small and medium enterprises (SMEs) in the United Kingdom (UK) was **** percent. This was the second-highest interest rate for such loans since 2008.

Lenders in the UK have started to raise mortgage rates in response to the conflict in the Middle East. In March 2026, the average 10-year fixed mortgage rate increased by ** basis points to **** percent. Rates for two-year fixed-rate mortgages increased by almost ****** percentage point. Mortgage rates surged at an unprecedented pace in 2022, with the average 10-year fixed rate doubling between March and December of that year. In response to mounting inflation, the Bank of England implemented a series of rate hikes, pushing borrowing costs steadily higher. As financing becomes more expensive, housing demand has cooled, weighing on market sentiment and slowing house price growth. How have the mortgage hikes affected the market? After surging in 2021, the number of residential properties sold fell significantly in 2023, dipping to just above *** million transactions. This contraction in activity also dampened mortgage lending. Between the first quarter of 2023 and the first quarter of 2024, the value of new mortgage loans declined year-on-year for five consecutive quarters. Even as rates eased modestly in 2024 and housing activity picked up slightly, volumes remained well below the highs recorded in 2021. How are higher mortgages impacting homebuyers? For homeowners, the impact is being felt most acutely as fixed-rate deals expire. Mortgage terms in the UK typically range from two to ten years, and many borrowers who locked in historically low rates are now facing significantly higher repayments when refinancing. By the end of 2026, an estimated five million homeowners will see their mortgage deals expire. Roughly two million of these loans are projected to experience a monthly payment increase of up to *** British pounds by 2026, putting additional pressure on household budgets and constraining affordability across the market.

Historical mortgage rate UK data clearly shows that rates move in cycles.

Graph and download economic data for Corporate Borrowing Rate from banks in the United Kingdom (CBRBUKA) from 1922 to 2016 about borrowings, academic data, United Kingdom, corporate, banks, depository institutions, and rate.