On Thursday 5th November the Bank of England raised Bank Rate by a quarter of a percentage point, from 3.75% to 4%. It is the first rise since August 2023 and ends a run of six holds this year. The Monetary Policy Committee voted eight to one, and the one dissenter wanted to go further, to 4.25%.
If you have spent the last couple of years expecting rates to drift down, this will feel like a step backwards. It is worth keeping it in proportion, though. A 0.25 point rise is modest, and the Bank has been at pains to say this is not the start of an automatic run of increases. Below we answer the questions we are hearing most from homeowners, landlords, tenants and people in the middle of buying or selling.
Why did the Bank raise rates?
In short, inflation. Consumer price inflation rose to 3.5% in September, well above the 2% target, with higher fuel and energy costs doing a lot of the damage. The Bank now expects inflation to peak at around 5% by the middle of 2027 before easing back. Its worry is that if prices keep climbing, that feeds into wages and other costs and becomes much harder to shift.
The economy has also held up better than expected, which gave the committee more room to act. You can read the reasoning in full in the Bank's November 2026 Monetary Policy Summary.
Will rates keep going up?
Nobody can say for certain, and anyone who tells you otherwise is guessing. The official line is that policy is "not on a pre-set path" and each decision will be based on the latest data. One committee member described the move as an insurance rise rather than the start of a hiking cycle, while others, including Governor Andrew Bailey, said a further increase is possible if energy prices and inflation stay stubborn.
The next decision is due on 17th December. After that, the meetings run into 2027 starting with 4th February. For a refresher on how the base rate filters through to everything else, see our explainer on the base rate and the UK property market.
I have a mortgage. Will my payments go up?
That depends entirely on the type of deal you have.
- Fixed rate: Nothing changes until your fixed period ends. Your rate and monthly payment are locked in.
- Tracker: Your rate moves with Bank Rate, usually from your next payment or the one after. Check your lender's letter for the exact date.
- Standard variable rate (SVR): Your lender decides whether and when to pass the rise on. Most do, though not always by the full amount.
As a rough guide, on a £100,000 repayment mortgage over 25 years, a 0.25 point rise adds about £14 a month. On £200,000 it is closer to £28 a month. If you are on interest only, the increase is a little higher, at around £21 a month per £100,000 borrowed.
If you are not sure which type of deal you are on, our guides to tracker mortgages and the standard variable rate explain the differences.
My fixed deal ends soon. What should I do?
Do not wait for your current deal to run out. Most lenders let you secure a new rate up to six months before your fix ends, and many will let you switch to a cheaper deal if prices fall before completion. Fixed rates had already been creeping up since early September as markets priced in this rise, so locking in a rate now gives you a safety net without closing the door on a better offer.
If you have slipped onto your lender's SVR, moving off it is usually the single quickest saving you can make. Our step-by-step remortgage guide walks you through comparing a product transfer with a full remortgage, and a whole-of-market broker can help you see the options side by side.
I'm a landlord. What does this mean for me?
For landlords with buy-to-let mortgages, the same rules apply: trackers rise straight away, fixes are protected until they end. What makes this rise sting a little more is the timing. It lands just a week after the Budget confirmed higher tax on rental income from April 2027, which we covered in Budget 2026: landlord tax rises and what to do now.
A few practical steps:
- Run the numbers on each property: Work out your monthly margin at today's rate and at, say, 0.5 points higher. That tells you how much headroom you really have.
- Check your stress test: Buy-to-let lenders test rental income against a notional rate. Higher rates can affect how much you can borrow when you refinance, so speak to a broker early.
- Review your costs, not just your rent: Letting fees, voids and maintenance all eat into the margin. A flat-fee agent can make a noticeable difference across a year.
It may be tempting to put the rent up straight away. Remember that under the Renters' Rights Act, increases on periodic tenancies go through the Section 13 process, can only happen once a year, and must reflect the open market rent. Tenants can challenge an increase they think is too high, so any rise needs to be backed by evidence. Our guide on defending a Section 13 rent increase at tribunal explains what that looks like.
I'm a tenant. Will my rent go up?
Not automatically. A rate rise does not give your landlord any new right to increase your rent. Rent can only go up once a year using the formal Section 13 notice, with at least two months' warning, and you can ask the First-tier Tribunal to review it if you think it is above the going rate for similar homes nearby.
That said, landlords with variable rate mortgages are now paying more, and some will look to pass that on at their next annual review. If a notice lands on your doormat, check local listings for comparable properties before deciding whether to accept or challenge it.
I'm buying a home. Should I worry?
A quarter point rise will not transform affordability on its own, but it does nudge lender stress tests and monthly costs upwards. If you have a mortgage offer already, it is typically valid for around six months, so keep your purchase moving. If you only have a mortgage in principle, check with your lender or broker that the figure still stands at today's rates.
There can be a silver lining. Higher borrowing costs tend to cool demand, which can mean less competition and more room to negotiate on price.
I'm selling. Will this affect my sale?
Possibly, at the margins. Some buyers may find they can borrow a little less than they hoped, and mortgage approvals had already been falling before this decision. The best defence is a realistic asking price and a well prepared sale, so buyers have fewer reasons to hesitate. Our guide to selling in a slower market covers how to stand out when buyers are being more careful.
If you are part of a chain, keep in close contact with your buyer about their mortgage. An offer issued before the rise is still valid, but any buyer still waiting for one should be pushing their broker now.
What to do next
A rate rise is a good prompt to check where you stand rather than a reason to panic. Find out what type of mortgage you have and when it ends, run the numbers on a rise of another quarter point, and get advice before the 17th December decision if your deal is close to expiring.
If you are a landlord looking to protect your margins, keeping costs under control matters more than ever. Our flat-fee tenant find service helps you let your property without a percentage of your rent disappearing every month, and our fully managed service takes compliance, rent collection and maintenance off your hands. If you have decided now is the time to sell, you can sell your home with Moovehub for a fixed fee, with no commission eating into your equity.
