Bank Rate rises to 4%: what it means for buyers and sellers

What happened

On 5 November 2026 the Bank of England raised Bank Rate by 0.25 percentage points, from 3.75% to 4%. The Monetary Policy Committee voted 8 to 1; the one dissenter wanted a larger rise, to 4.25%. It is the first increase since August 2023.

The Bank’s reason is inflation. Higher energy prices linked to the conflict in the Middle East have added to price pressures: inflation was 3.5% in September, and Bank staff expect it to reach about 5% by the second quarter of 2027. The Committee says policy “is not on a pre-set path”, and its members differ on what comes next. The next decision is due on 17 December.

Why fixed rates had already moved

If you are looking at fixed mortgage deals, much of this had already happened. Fixed rates follow what markets expect, not the rate on the day. The Bank’s own report says benchmark two-year mortgage rates have risen by nearly 0.5 percentage points since early September, and brokers quoted by Mortgage Solutions say lenders had already priced the rise into their fixed deals. We covered that earlier move in our note on fixed rates rising while Bank Rate held.

The direct effect today falls on tracker and variable-rate borrowers. As an illustration, on a £400,000 repayment mortgage over 25 years, a rise from 5.75% to 6% adds about £61 a month.

What it means if you are buying

• Check your budget against today’s rates. A mortgage in principle from a few months ago may no longer stretch as far. Our guide to mortgage rates at 6% works through what a higher rate does to a budget.
• An offer in hand matters. Mortgage offers usually hold their rate for a set period, so know your expiry date and how it fits your timetable.
• Fewer buyers can mean more choice. The Bank notes that new mortgage approvals have been falling. In a quieter market, a buyer with finance in place can carry more weight, though that varies from one area to the next.

What it means if you are selling

• Buyers are watching monthly costs. Expect more scrutiny of the price against what comparable homes have actually sold for. Our house-price pages show those figures for your area.
• Check how firm your buyer’s finance is. A buyer who arranged a mortgage at older rates may need to look again if their offer runs out before completion.
• If your home has stalled, rates may be part of the story, but they are rarely all of it. Our guide to why a house is not selling looks at what you can control.

Jon’s view

A quarter-point rise makes the headlines, but for most movers it changes the sums more than the decision. If you have a good reason to move, check your numbers against today’s rates and carry on judging each home on the evidence in front of you.