What the Base Rate Rise to 4% Means for Your Mortgage

The Bank of England's Monetary Policy Committee (MPC) raised the base rate from 3.75% to 4% on November 5th 2026. It's the first rise since August 2023 and the first change of any kind in almost a year.

The move was widely expected. Earlier in 2026, many people hoped rates would keep falling, but conflict in the Middle East has pushed up energy costs and inflation. Inflation reached 3.5% in September, well above the Bank's 2% target, so the MPC has raised rates to bring prices back under control.

What does the base rate rise mean for your mortgage?

How it affects you depends on the type of mortgage you have:

Fixed rate: If you're on a fixed-rate deal, your monthly payments won't change until your deal ends. But if your fixed rate ends in the next three to six months, now is the time to start looking at your options, as the deal you move onto is likely to cost more than the one you have now

Tracker: Tracker mortgages follow the base rate, so your rate will rise by 0.25%, usually from your next payment. Your lender should write to you to confirm your new monthly payment

Standard Variable Rate (SVR): Lenders set their own SVRs, but many will now raise them. Nationwide, for example, has confirmed its Base Mortgage Rate (SVR) will go up from 5.75% to 6%. SVRs are usually the most expensive way to pay your mortgage, so if you're on one, it's worth looking at whether a new deal could save you money.

Should you lock into a new fixed deal now?

The good news is that many lenders had already expected this rise and built it into their fixed rates, so fixed deals may not jump overnight. Even so, fixed rates are at their highest level in around three years, and some economists think the base rate could rise again early next year.

You can often secure a new rate up to six months before your current deal ends. Locking in early protects you if rates keep climbing, and a mortgage broker can still help you switch to a better deal before it starts if rates fall in the meantime.

What does this mean for first-time buyers?

If you're buying your first home, a rate rise can feel worrying, but it doesn't mean you should put your plans on hold. Because much of the rise was already reflected in lenders' fixed rates, the deals you've been quoted as a first-time buyer may not change much.

It's a good idea to check how much you can borrow again if you got a quote a few weeks ago, as lenders' rates and criteria can change quickly. Getting your documents ready and securing a mortgage offer early can also help protect you if deals are withdrawn or repriced.

The Bank of England's next decision is due on 17 December 2026.

Speak to an expert

Whether your deal is ending soon, you're on a tracker or SVR, or you're buying your first home, a mortgage expert can help you understand your options and find a deal that suits you.

Get in touch today to speak to one of our advisers, whether you're concerned about the base rate rise, or simply want to review your options.