UK interest rate rises to 4% in November 2026

The Bank of England raised Bank Rate to 4%, and benchmark two-year mortgage rates have already risen nearly 50 basis points since early September.

The facts

• Bank Rate rose to 4% on 5 November 2026, a quarter-point increase from 3.75%.
• The Monetary Policy Committee split 8-1. Catherine L Mann wanted half a point, to 4.25%.
• Benchmark two-year mortgage rates had risen by nearly 50 basis points since the beginning of September, the Bank recorded.
• New mortgage approvals for households had been falling, the same minutes note.
• UK CPI inflation reached 3.5% in September, and the Bank expects it to rise to around 5% by the middle of next year.

What it means for your money

• Borrowing just got dearer. Two-year fixes already sit nearly 50 basis points above where they were in early September.
• Owners on tracker deals pay the increase from the next instalment, while those on fixed terms meet it at renewal, into a market where approvals are already falling.
• Glopra records an average UK home at 361,632 USD against an average monthly rent of 1,862 USD, so a dearer mortgage now takes a larger slice of that rent before anything reaches the owner.

What to watch

• Minutes of the meeting ending 16 December are published on 17 December 2026, the next scheduled decision.
• One reading limit: the Bank published no estimate of how much of today's quarter point reaches borrowers, so the near 50 basis points since early September is the only pass-through figure on the record.

Sources: Bank of England https://www.bankofengland.co.uk/-/media/boe/files/monetary-policy-summary-and-minutes/2026/monetary-policy-summary-and-minutes-november-2026.pdf

Market data: Edinburgh · Manchester · United Kingdom · London