Bank Rate rises to 4%: what the November 2026 decision means for remortgaging

Bank Rate is now 4%. On Thursday 5 November 2026 the Bank of England announced that its Monetary Policy Committee (MPC) had raised Bank Rate by 0.25 percentage points, from 3.75% to 4%. In the Bank’s own words, the Committee “voted by a majority of 8–1 to increase Bank Rate by 0.25 percentage points, to 4%. One member voted to increase Bank Rate by 0.5 percentage points, to 4.25%.” This post replaces our preview from 2 November and sets out what the rise does, and does not, change for someone remortgaging.

What was decided and how the MPC voted

• Decision: Bank Rate up 0.25 percentage points to 4%, at the meeting ending on 4 November 2026, published on 5 November 2026.
• For a 0.25-point rise (8 members): Andrew Bailey, Sarah Breeden, Swati Dhingra, Megan Greene, Clare Lombardelli, Huw Pill, Dave Ramsden and Alan Taylor.
• For a 0.5-point rise to 4.25% (1 member): Catherine L Mann.
• Next decision: the Bank lists the next announcement as due on 17 December 2026.

At the previous meeting in September the MPC held Bank Rate at 3.75% by 6–3, with three members already voting for a rise to 4%. This time the majority moved to a rise.

Why the MPC raised Bank Rate, in brief

The minutes give several connected reasons. In summary, and in our own words:

• Energy prices have risen further. The conflict in the Middle East is in its ninth month, and oil and gas prices have climbed again since the summer. CPI inflation rose to 3.5% in September and the Bank now expects it to reach around 5% by the middle of 2027 before falling back.
• The risk of knock-on effects has grown. The Committee found limited evidence so far of higher energy costs spreading into other prices and wages, but judged that the inflationary pressure “in the pipeline is now sufficient to warrant an increase in Bank Rate”.
• The economy has been stronger than expected. Activity data in recent months were generally firmer than forecast, which the Bank says added “to the case for modestly tighter monetary policy”.
• No pre-set path. The Committee stressed that policy is “not on a pre-set path” and that it will assess the evidence at each meeting. Individual members’ views on what comes next differ: some see a likely case for a further rise, while one described this as a “one-for-now” insurance move. We do not try to predict the next decision.

The minutes also note that benchmark two-year mortgage rates had risen by nearly 50 basis points (about 0.5 percentage points) since the beginning of September, and that new mortgage approvals for households had been falling.

How Bank Rate reaches a remortgage

Bank Rate is the rate the Bank of England pays on money that banks and building societies hold with it. It feeds through to mortgages in different ways depending on the type of deal:

• A fix that is still running does not change. The rise on 5 November does not alter the monthly payment during the fixed period.
• Trackers are linked to Bank Rate, so the rate follows it on the terms set out in the offer, including the margin, any floor and the date the change applies.
• The standard variable rate (SVR) is set by each lender. It often moves when Bank Rate moves, but the lender decides whether, when and by how much, and must tell borrowers before the payment changes.
• New fixed-rate deals are priced mainly from swap rates, the market rates lenders pay to fund fixed-rate lending. Swap rates already reflect what markets expect Bank Rate to do, so new fixed rates are not set by Bank Rate directly. They had already been rising before this decision, and they can move in either direction afterwards depending on what markets expect next.

The FCA’s guidance on mortgages and interest rates covers the same distinction between tracker and lender-set variable rates, and explains what happens when a deal ends and the reversion rate applies. For the terms used here, see SVR and product transfer.

What the rise looks like in pounds

These figures use the site’s shared EXAMPLE case: a £185,000 repayment mortgage over 22 years. The rates are labelled scenarios, not quotes. The tracker margin of 0.50 points over Bank Rate is an EXAMPLE assumption, and the SVR row assumes the lender passes on the full 0.25 points, which it does not have to do. All payments come from the same maths as our repayment calculator, so you can check them.

On this balance and term, the 0.25-point rise adds £25.32 a month to the EXAMPLE tracker, or about £304 a year. On the SVR the same step is worth £29.15 a month (about £350 a year), because the payment starts from a higher rate. The fix that is still running is unaffected until it ends.

The larger number is still the gap between the SVR and a new deal. The EXAMPLE options for someone whose fix is ending are a product transfer at 4.39% (£1,093.98 a month) or a new-lender rate of 4.14% (£1,068.80 a month), before fees. Against the EXAMPLE SVR at 7.74% (£1,460.83), the new-lender payment is £392.03 a month lower and the product transfer £366.85 lower. That gap is far bigger than one Bank Rate step. These EXAMPLE fixed rates are not changed by the decision itself; real fixed-rate offers move with swap rates, which is why we have not simply added 0.25 points to them.

For scale, the rise of nearly 0.5 percentage points in two-year mortgage rates mentioned in the minutes would, on the same £185,000 over 22 years, take an EXAMPLE 4.14% to 4.64%. That is about £50 a month more, an illustration of size only and not a statement about any lender’s rates.

If your fix ends soon

If your fixed rate ends in the next few months, the rise does not change your current payment. It may affect what is on offer next, mostly through swap rates rather than Bank Rate itself. Some points to keep in mind:

• The FCA notes that mortgage offers are usually valid for three to six months, and many lenders let you arrange a new deal ahead of your current one ending. Read the offer for how long the quoted rate is held.
• Fixed rates quoted before and after 5 November may differ for reasons that have more to do with market expectations than with the decision on the day.
• A tracker passes on future Bank Rate changes in both directions. The table above shows the size of a single 0.25-point step on the EXAMPLE balance.
• Fees, any early repayment charge and the length of the deal still decide most comparisons. Our remortgage vs product transfer calculator puts those side by side over the same horizon.

If payments already feel hard to manage, the FCA’s guidance is to contact your lender as soon as possible. MoneyHelper offers free, impartial guidance.

What happens next

The Bank of England lists the next Bank Rate decision as due on 17 December 2026. The minutes say the Committee will keep watching how energy prices feed into pay, pricing and spare capacity, and will “adjust Bank Rate as necessary” to bring CPI inflation back to the 2% target in the medium term. The outcome of the December meeting is not known.

Sources

• Bank of England, Monetary Policy Summary and minutes, November 2026 (published 5 November 2026): the decision, vote split, member names, reasons, mortgage rate and approvals comments.
• Bank of England, Interest rates and Bank Rate: current Bank Rate and next decision due 17 December 2026.
• Bank of England, upcoming MPC dates: 17 December 2026.
• Bank of England, Monetary Policy Summary and minutes, September 2026: the previous 6–3 vote to hold at 3.75%.
• FCA, support with mortgages and interest rates: tracker and variable rates, reversion rates, offer validity and contacting your lender.

Sources last checked 5 November 2026. EXAMPLE figures are illustrative scenarios, not quotes, forecasts or advice. Your lender’s documents and your own figures take priority.