What happened on 5 November
The Bank of England's Monetary Policy Committee voted 8–1 to raise Bank Rate by 0.25 percentage points to 4%. It is the first rise since August 2023. One member wanted a bigger, 0.5-point move.
The reason is inflation. CPI rose to 3.5% in September, up from 3.1% in August, and the Bank now expects it to reach around 5% by mid-2027, mainly because of energy prices.
Who feels it, and when
Tracker borrowers usually see their payments change first, often from the next monthly payment, because the rate is linked directly to Bank Rate. Moneyfacts estimates a 0.25-point rise adds around £37 a month to a £250,000 tracker over 25 years.
Standard variable rate (SVR) borrowers may also see increases, as lenders set SVRs themselves and tend to pass rises on more slowly.
Fixed-rate borrowers pay the same until their deal ends. The bigger question is what replaces it. Moneyfacts data quoted on 5 November put the average two-year fix at 5.97% and the average five-year fix at 6%.
Is more to come?
Some forecasters, including Deutsche Bank and Oxford Economics, expect Bank Rate to reach 4.25% by early 2027, though nothing is certain. The next decision is on 17 December 2026. Some brokers also noted that much of this rise was already priced into fixed rates before the announcement, so the picture can change quickly in either direction.
Quick tips
- Check your deal type and end date. Your annual mortgage statement shows whether you are on a fix, tracker or SVR.
- On a tracker or SVR? Ask whether switching to a fixed rate makes sense for you, and check for any early repayment charges first.
- Fix ending in the next six months? Many lenders let you secure a new deal in advance, and you may still be able to switch if rates move in your favour before completion.
- Re-test your budget. Work out what your payment would look like at today's average rates, not the rate you locked in years ago.
- Get your paperwork ready. Recent payslips or accounts, bank statements and ID make a switch much quicker.
How OMB can help
Our CeMAP-qualified advisers compare options across the whole market and can look at both switching with your current lender and moving to a new one. See what a different rate would mean with our repayment calculator, download the income and expenditure worksheet from our client toolkit, or read our guide on when to remortgage.
Sources
- Bank of England – Interest rates and Bank Rate (decision of 5 November 2026)
- MoneyWeek – Live: Bank of England raises interest rates (5 November 2026)
To talk it through, contact us or start your enquiry.
Important: This guide is general information, not personal advice. Rules, rates and lender criteria change; speak to an adviser about your circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage.