Bank of England Housing Update (November 2026)

Published 5 November 2026

Updated 5 November 2026

The Bank of England has increased Bank Rate to 4%, from 3.75%.

The Monetary Policy Committee (MPC) voted 8–1 for the 0.25 percentage-point increase. Catherine L Mann wanted a larger increase to 4.25%. Nobody voted to hold or cut.

The next decision is due on 17 December 2026.

Mortgages

Mortgage rates had already risen before today’s announcement. The Bank reports benchmark two-year mortgage rates rose nearly 0.50 percentage points since early September.

Rates on new fixed-rate mortgage deals reflect expectations for future interest rates, not just today’s Bank Rate. Today’s increase does not automatically mean every mortgage rate rises by 0.25 percentage points.

See: How mortgage lender funding affected pricing in 2022 (historical explainer)

What this means depends on your mortgage:

• Fixed-rate borrowers: This decision will not change your payments during your fixed period.
• Tracker borrowers: Bank Rate-linked rates generally rise with Bank Rate, subject to your terms.
• Standard variable-rate borrowers: Lenders set their own standard variable rates, subject to your mortgage terms; changes do not necessarily match Bank Rate changes.

For those planning their next mortgage:

• Remortgaging homeowners: Compare replacement deals before your current rate ends.
• First-time buyers: Check current mortgage costs against your budget.
• Landlords: Review your mortgage costs, particularly before a fixed deal ends.

Inflation

Annual Consumer Prices Index (CPI) inflation reached 3.5% in September, above the Bank’s 2% target.

Higher energy prices and stronger-than-expected economic activity prompted the increase. The Bank wants to prevent higher inflation becoming persistent.

It expects inflation around 5% by mid-2027. Its central forecast returns inflation to 2% in the third quarter of 2028. This projection depends on assumptions about future interest rates, energy prices and the wider economy; it is not a guarantee.

The Bank says it will assess the evidence at each meeting and adjust Bank Rate as necessary; it has not committed to further increases:

“Monetary policy is not on a pre-set path.”

Housing

The Bank’s November report says:

“Housing market activity has weakened, and house prices have fallen.”

House-purchase mortgage approvals fell 8% in July–September, compared with April–June.

The ONS UK House Price Index fell 0.8% in June–August, compared with March–May.

These figures predate today’s decision. They do not show the effect of November’s increase.

Sources

• November MPC summary and minutes
• November Monetary Policy Report