05/11/2026
Bank of England News……WHY?! 🤨
The Bank of England has increased the base rate from 3.75% to 4%.
Not the news mortgage holders wanted to hear, but importantly, this increase was widely anticipated.
So, why have they increased rates?
Inflation remains above the Bank of England’s 2% target, with rising global energy prices adding further pressure. Increasing interest rates helps reduce borrowing and spending, with the aim of preventing these price increases from feeding into wider inflation.
What does this mean for your mortgage?
Tracker mortgages – If your mortgage tracks the Bank of England base rate, your interest rate will increase by 0.25 percentage points, with most borrowers seeing higher monthly payments from the following month.
Fixed-rate mortgages – If you’re already on a fixed rate, nothing changes until your current deal ends.
Looking for a new mortgage or remortgage? – Don’t panic! Lenders have already factored anticipated rate increases into many of their available fixed-rate deals.
Fixed mortgage rates are largely influenced by swap rates, which reflect expectations of future interest rates. As this increase was expected, it doesn’t automatically mean fixed mortgage rates will rise further.
If your mortgage deal is coming to an end, or you’re concerned about how these changes might affect you, feel free to get in touch.
Your home may be repossessed if you do not keep up repayments on your mortgage.
