Base Rate Rises to 4%: What It Means for Your Mortgage

The Bank of England has raised base rate from 3.75% to 4%. Its Monetary Policy Committee voted eight to one for the rise on 5 November 2026, with the other member voting for a bigger increase to 4.25%. It is the first base rate rise in more than three years.

If you have a tracker mortgage, your payments go up. If you are on a fixed rate, nothing changes until your deal ends. If your deal ends soon or you are buying, the decision mostly confirms what lenders had already priced in.

This guide explains what the rise means for each type of mortgage and what to do next. For the latest averages and live deals, see our mortgage rates update.

What has the Bank of England decided about base rate?

The Bank of England raised Bank Rate, often called base rate, by 0.25 percentage points to 4% on 5 November 2026. Eight of the nine members of the Monetary Policy Committee voted for the rise, and one wanted a larger rise to 4.25%. Base rate had been 3.75% since December 2025. The next decision is due on 17 December 2026, according to the Bank of England’s published MPC dates.

Measure	Before	Now
Bank Rate	3.75%	4%
Change		Up 0.25 percentage points
Vote		8 for 0.25 points, 1 for 0.5 points
Next decision		17 December 2026

Why did the Bank of England raise interest rates?

Inflation has picked up. Consumer price inflation was 3.5% in the 12 months to September 2026, up from 3.1% in August, according to the ONS consumer price inflation bulletin. Higher energy prices linked to the conflict in the Middle East are the main driver. The Bank’s target is 2%, and raising rates is how it tries to slow price rises.

The Governor, Andrew Bailey, said the rise should not be seen as the first in an inevitable long run of increases. He also said it may not be the last if the conflict continues. So more rises are possible, but not certain.

How does the base rate rise affect tracker mortgages?

Tracker payments rise straight away, usually from your next payment or the one after. A tracker is set at a fixed margin above Bank Rate, so a 0.25 point rise in Bank Rate means a 0.25 point rise in your mortgage rate. Your lender will write to you with the new payment.

If your tracker has no early repayment charges, you can usually move to a fixed rate at any time. Check your mortgage offer before you decide.

What happens if you are on a standard variable rate?

Most lenders raise their standard variable rate (SVR) after a base rate rise, but they do not have to and the timing varies. SVRs are set by each lender, so the change may be less than 0.25 points or come a few weeks later. SVRs are usually far higher than the best deals available, so if you are on one, a new deal could save you a lot more than this rise costs. Our guide to product transfers and remortgaging explains your options.

Will fixed mortgage rates go up after the rise?

Not much straight away, because lenders had already priced the rise in. Fixed rates are set mainly from swap rates, which follow where markets expect interest rates to go. At the start of November 2026, Moneyfacts reported an average two-year fix of 5.97% and an average five-year fix of 6.00%, the highest in around three years. Fixed rates will now follow what markets expect from the next few decisions, so they can still move either way.

If you are already on a fixed rate, your payment does not change until the deal ends.

What should you do if your deal ends in the next six months?

1. Secure a new rate now. Many lenders let you lock in a deal up to six months before your current one ends. Our remortgage timing guide explains how.
2. Keep watching the market. If rates fall before your new deal starts, it is often possible to switch to a cheaper product.
3. Compare your lender’s product transfer with the wider market. The cheapest option is not always your current lender.
4. Avoid rolling onto the standard variable rate. Make sure the new deal starts the day the old one ends.
5. Check any early repayment charge before leaving a deal early. The FCA rules in MCOB 12.3 require these charges to be a reasonable estimate of the lender’s costs, but they can still be large. See our guide to remortgaging with an early repayment charge.

What does the rise mean if you are buying a home?

Your mortgage in principle may be worth less than it was. Lenders test affordability at a stressed rate, so higher rates can reduce how much they will lend. If you have an agreement in principle from a few months ago, ask us to recheck it before you make an offer. Mortgage offers already issued keep their rate until they expire, which is usually three to six months.

First-time buyers can see what this means for their budget with our mortgage affordability calculator and our complete first-time buyer guide.

Should you fix or choose a tracker now?

It depends on how much a rise in payments would hurt your budget. Average variable rates are still lower than average fixes, which shows the market expects rates to stay higher for a while.

• A fixed rate gives you a set payment for the term. You are protected if base rate keeps rising, but you pay more today.
• A tracker costs less today, but your payment rises every time base rate does. Some trackers have no early repayment charges, so you can switch to a fix later.

We can show you both side by side for your balance, so you can see the difference in pounds.

Frequently asked questions

Speak to Option Finance about the base rate rise

Tell us your balance, your property value and when your deal ends. We will tell you what the rise means for your payments and whether to lock in a rate now.

Book a free initial consultation using the enquiry form below. See our remortgage advice, the complete UK remortgage guide and our live mortgage rate tables.