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ECB holds rates at 2.5%: what it means for your self-build mortgage

The ECB left its deposit rate at 2.50% on 29 October 2026. What no change means for a tracker, a fixed rate and a staged drawdown.

Reviewed and edited by Published 2 min read

Step line chart: the ECB deposit facility rate was 2.00% in early 2026, 2.25% from 17 June, 2.50% from 16 September and was held at 2.50% on 29 October 2026.

In brief

  • On 29 October 2026 the ECB kept its deposit facility rate at 2.50%. The main refinancing rate stays at 2.65% and the marginal lending rate at 2.90%.
  • A tracker mortgage does not change because of this decision. A fixed rate was never going to.
  • The ECB said it is not committing to a rate path and will decide meeting by meeting. Its next decision is on 17 December 2026.
  • Keep budgeting build-period interest at a rate at or above today's, not below it.

The European Central Bank (ECB) kept its interest rates unchanged on 29 October 2026. The deposit facility rate, the one tracker mortgages follow, stays at 2.50%, where it has been since 16 September. The main refinancing rate stays at 2.65% and the marginal lending rate at 2.90%.

What did the ECB say?

The ECB said energy prices have continued to rise, which pushes up the risk of higher inflation and weaker growth. It said borrowing conditions have tightened since its last meeting. It did not say which way rates will go next: it will decide meeting by meeting, based on the data, and is “not pre-committing to a particular rate path”. Its next monetary policy decision is on 17 December 2026.

Does this change your mortgage?

No. Nothing about your repayments changes because of this decision.

  • A tracker mortgage follows the ECB rate, which is unchanged, so your rate is unchanged.
  • A fixed rate stays the same until the fixed period ends, then moves to the lender’s then-current rate.
  • A variable rate moves when your lender decides. Lenders can change it without an ECB move, so check for a letter from yours.

Rates are higher than at the start of the year, when the deposit rate was 2.00%. See what the September rise meant for a self-build mortgage.

What should you do now?

  • Keep your build-period budget on today’s rate or higher. A hold is not a cut, and the ECB has said it is not ruling a move either way.
  • With a staged drawdown you pay interest only on what you have drawn, so any later change costs more near the end of the build than at the start. See how staged drawdown works and how to plan the interest you pay during the build.
  • If you are choosing a rate, ask each lender what applies to every drawdown and what happens when a fixed period ends. The self-build mortgage guide covers the questions to ask.

This article reports the ECB’s decision. It is not a forecast. The ECB sets policy at each meeting, and your lender sets your mortgage rate.

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Sources

Last reviewed 29 October 2026. Rules and figures change, so confirm anything important with the source before you rely on it.

  1. Monetary policy decisions, 29 October 2026European Central Bank
  2. Key ECB interest ratesEuropean Central Bank

News articles describe what was announced or published on the date shown. They are general information, not financial, tax or legal advice, and measures announced in a Budget may change before they become law.