Bank Rate rises to 4%: what it means for your mortgage
On Thursday 5 November 2026 the Bank of England raised Bank Rate from 3.75% to 4%. It's the first rise since August 2023, and it ends almost a year of rates holding steady.
If you've seen the headlines and felt your stomach drop a little, that's understandable. What it actually means for you depends almost entirely on the kind of mortgage you have. So here's the plain-English version.
Why the Bank has raised rates
Inflation has started climbing again. Prices rose by 3.5% in the year to September, up from 3.1% in August, driven mainly by higher energy and fuel costs linked to the conflict in the Middle East. The Bank's job is to bring inflation back to its 2% target, and raising Bank Rate is its main tool for doing that.
The Bank's committee voted eight to one for the rise; the one member who disagreed wanted a bigger increase. The Governor, Andrew Bailey, said the rise “shouldn't be seen as the first in an inevitable long sequence of hikes”. The Bank's next decision is due on Thursday 17 December.
What it means for you
If you're on a tracker mortgage
A tracker follows Bank Rate. Your rate is likely to go up by the same 0.25%, usually from your next payment or the one after, and your monthly payment will rise with it. Your lender should write to you to confirm the new amount.
If you're on your lender's standard variable rate (SVR)
Your lender sets its own SVR, so it doesn't have to follow Bank Rate, but most do, usually within a few weeks. If you've moved onto an SVR because an earlier deal ended, it's worth a conversation now, as SVRs are often higher than the deals available to you.
If you're on a fixed rate
Nothing changes today. Your rate and payments stay the same until your fixed deal ends. Lenders had largely expected this rise, so much of it was already reflected in fixed-rate pricing before today.
If your fixed rate ends in the next six months
This is the group I'd most like to hear from. Many lenders let you secure a new rate up to six months before your current deal ends, and you aren't usually locked in if something better comes along before you complete. Rates for new deals are higher than many people are used to, so the sooner you know your options, the more choice you tend to have.
If you're buying a home
Lenders may adjust their rates and criteria over the coming weeks, so a decision in principle you got some time ago may need refreshing. It's worth checking where you stand before you make an offer.
Three sensible things to do this week
- Find your deal end date. It's on your annual mortgage statement or your lender's app. Many people don't know it.
- Check what type of mortgage you have. Tracker, variable or fixed: the answer tells you whether today's news affects you now or later.
- Talk to someone before you're in a rush. A review costs nothing to start, and it's far easier to plan with six months to go than six days.
A word on keeping perspective
A 0.25% rise is not the shock of 2022 and 2023. For most households, nothing changes overnight. Decisions about your mortgage are best made calmly, with the whole picture in view, and that's exactly what we're here for.
If you'd like us to look at your situation, call us or get in touch through our website. We'll go through your options in plain English, with no obligation to go ahead.
Mike Siviter
This article is for general information only and isn't personal advice. Rates, lender criteria and the facts set out here were correct on 5 November 2026 and may change. Whether a new mortgage or product transfer is right for you depends on your circumstances; we'll only recommend something once we understand them.
YOUR HOME (OR PROPERTY) MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
There may be a fee for mortgage advice. The precise amount will depend upon your circumstances.
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