The Bank of England has increased its benchmark interest rate to 4%, raising borrowing-cost concerns for UK households and businesses.
The Monetary Policy Committee voted by eight votes to one to raise Bank Rate by 0.25 percentage points from 3.75% at its meeting ending 4 November, with the decision published on Thursday 5 November 2026.
The dissenting member favoured a larger increase to 4.25%.
WHY DID THE BANK RAISE RATES?
The Bank cited prolonged increases in international energy prices linked to conflict in the Middle East.
UK consumer price inflation reached 3.5% in September, and the Bank expects inflation to rise towards 5% by the middle of 2027 before easing.
The central bank's inflation target remains 2%. Its statement stresses that future rate decisions are not on a predetermined path.
WHAT DOES THIS MEAN FOR MORTGAGES?
Borrowers on tracker or variable-rate mortgages may see borrowing costs rise, depending on their contracts.
Existing fixed-rate mortgage customers generally retain their agreed rate until their deal ends, but replacement deals may cost more.
Savers may see some deposit rates change, although banks decide their own product rates and do not necessarily pass through the full increase.
WHAT HAPPENS NEXT?
The Bank's next scheduled monetary policy decision is 17 December 2026. Readers should not treat that date as a promise of another rate increase or cut.
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Property prices and interest rates may rise or fall; borrowing carries costs and risks. Readers should verify current figures, product terms and eligibility with official sources and seek independent regulated mortgage or financial advice and qualified legal advice where appropriate.
Source: Bank of England Monetary Policy Summary, published 5 November 2026: https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2026/november-2026 ; official decision calendar: https://www.bankofengland.co.uk/monetary-policy/upcoming-mpc-dates .