What happened
The Monetary Policy Committee (MPC) voted 8–1 to raise Bank Rate by 0.25 percentage points to 4.00%. The one dissenter, Catherine Mann, wanted a bigger rise to 4.25%. Nobody voted to hold or cut.
It's a sharp turn. Bank Rate was cut six times between August 2024 and December 2025, reaching 3.75%, and was then held all through 2026. But the number of members voting to raise rates grew from one in April to three in July and September. The Bank says inflation is rising, driven largely by energy prices, and expects it to climb further into 2027.
The next decision is on 17 December 2026. See every decision and vote on our base rate tracker.
Fixed rates moved first
If you've looked at mortgage deals recently, you'll know the rise was already in the price. Lenders set fixed rates from swap rates, which move on expectations, and those expectations shifted in October:
- The average two- and five-year fixed rate rose to about 6% in October 2026 (Moneyfacts), the highest in three years.
- The best five-year remortgage fixes for borrowers with at least 40% equity were around 4.9–5.0% in early November, with fees of about £999–£1,499.
- The best two-year fixes were slightly higher, at around 5.0–5.1%.
Some lenders trimmed rates slightly in the days after the decision, but fixing now costs noticeably more than it did in the summer.
What the rise means for your mortgage
Fixed rate: nothing changes until your deal ends. What matters is the rate you can get when it does.
Tracker: your rate rises by 0.25 percentage points, usually from your next payment. On a 25-year repayment mortgage, a 0.25-point rise (for example, from 4.75% to 5.00%) costs about:
| Mortgage balance | Extra per month | Extra per year |
|---|---|---|
| £150,000 | £22 | £261 |
| £200,000 | £29 | £347 |
| £300,000 | £43 | £521 |
Standard variable rate (SVR): most lenders pass rises on to their SVR. The average SVR was about 7.1% in November 2026. On a £200,000 mortgage over 25 years, that's about £1,426 a month, compared with about £1,158 at a 4.9% fix: roughly £268 a month more.
Illustrations only, not quotes. Capital-repayment mortgage; your figures depend on your balance, term and lender.
If your deal ends in the next six months
Waiting for rates to fall means betting against the direction the Bank of England is moving. A few practical steps:
- Secure a rate now. Most lenders let you lock in a new deal up to six months before your current one ends. If rates fall before you complete, you can usually switch to a cheaper product.
- Check your equity. The best rates go to borrowers with at least 40% equity (60% LTV or lower). If your home has gone up in value, you may have moved into a cheaper band. In our analysis of 9,767 remortgage enquiries, two-thirds of homeowners already had at least 40% equity.
- Look at total cost, not just the rate. With many of the lowest rates carrying £999–£1,499 fees, a slightly higher fee-free rate can be cheaper on a smaller mortgage.
- Don't drift onto the SVR. It's almost always the most expensive place to be, and it will rise with Bank Rate.
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Fix for two years or five?
Right now the best five-year fixes are priced at or slightly below the best two-year fixes. A five-year fix gives you longer protection if rates keep rising. A two-year fix keeps your options open if you expect to move or think rates will fall back by 2028.
Neither is wrong. It depends on how much payment certainty you need and your plans for the property. Read our current remortgage rates guide for more on each option.
Important: Your home may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice. The actual rate available will depend on your circumstances. Think carefully before securing other debts against your home.