Bank of England raises Bank Rate: what it means for your mortgage, loans and savings

What has happened

The Bank of England's Monetary Policy Committee met on 4 November 2026 and voted by a majority of 8 to 1 to raise Bank Rate by 0.25 percentage points, to 4%. The one member who disagreed wanted a bigger rise, to 4.25%. The Bank published the decision on 5 November.

The Bank says the conflict in the Middle East has pushed up energy prices, and with them household fuel costs and utility bills. UK CPI inflation rose to 3.5% in September 2026 and the Bank expects it to reach about 5% by the middle of 2027. It raised Bank Rate to stop higher energy costs feeding through into other prices and wages.

Bank Rate had been 3.75% since December 2025, after a run of cuts that began in August 2024. In the minutes, the Committee noted that benchmark two-year mortgage rates had already risen by nearly 50 basis points since the beginning of September. Governor Andrew Bailey said the rise should not be seen as the first in an inevitable long run of rises, but that, unless the conflict is resolved, it did not seem likely to be the last. The next decision is due on 17 December 2026.

What it means for you

Bank Rate is the rate the Bank of England pays and charges the banks. The Bank says that when it goes up, banks will usually raise what they charge on loans and what they pay on savings. How soon that reaches you depends on your deal. A fixed rate mortgage, loan or savings account stays the same until the fixed period ends. A variable or tracker deal can move much sooner, and your lender should tell you if your payment is changing. If you have a credit card, check your next statement for any change to its rate.

For many people the bigger change comes later, when a fixed mortgage deal ends. Rates for new deals had already been rising before this decision. The Bank's explainer on interest rates points out that even a small change in rates can make a big difference to a monthly mortgage payment, and it links to a calculator so you can see how yours could change.

Savers may see a small rise on variable accounts, but banks decide whether and when to pass it on. With inflation forecast to rise, money in a low-rate account may still lose value in real terms. None of this is a reason to take on new borrowing. If your budget was already tight because of energy bills, a higher payment on top is a reason to get free advice early, before any payment is missed.

Who it affects

Anyone with a variable or tracker mortgage, a fixed mortgage deal ending soon, a credit card or other variable rate borrowing, or savings in a variable rate account.

What you can do

• Find out which type of deal you have. Look at your mortgage offer or annual statement, your loan agreement and your credit card statement for the words fixed, variable or tracker, and the date any fixed period ends. Fixed until a date: nothing changes yet, but plan for that date. Variable or tracker: expect a letter about a new payment. Credit card: check the rate on your next statement.
• If a higher payment would not fit your budget, call your lender before you miss anything. Ask what options it has, such as a temporary arrangement or a longer term, and ask how each one would affect the total you repay. Our guide on what to do if you cannot afford your repayments covers what to say.
• Put your mortgage or rent, council tax and energy first. These are priority bills because missing them has the most serious consequences. Our guide on which bills to pay first explains the order.
• Get free, confidential debt advice from MoneyHelper, StepChange, National Debtline or Citizens Advice if money is tight. They can look at your whole budget and talk to lenders for you. See where to get free debt advice.
• If you have savings, check the rate on your account and compare it with what other accounts pay. A variable rate can change at any time, so look again after the next decision on 17 December 2026.

Sources

Every fact in this page was checked against these official sources on 8 November 2026.

1. Bank Rate increased to 4%: November 2026 Monetary Policy Summary and Minutes Bank of England
2. Why have interest rates gone up in the UK? Bank of England
3. What are interest rates? Bank of England

Written and fact-checked by the PiggyBank editorial team. Published 8 November 2026. This news is general information, not financial advice. How we write and check our guides.