Bank Rate rises to 4%: a £200,000 tracker mortgage costs £28.57 a month more

The Bank of England raised Bank Rate by 0.25 points to 4% on Thursday 5 November 2026. On a £200,000 tracker mortgage with 25 years left, that adds £28.57 to the monthly payment, or £342.84 a year. Fixed rates don't change until the deal ends.

What the Bank decided, and why

The Monetary Policy Committee voted 8 to 1 for the rise. The one member who voted differently, Catherine L Mann, wanted a bigger rise, to 4.25%. The Bank says the conflict in the Middle East has disrupted the supply of energy and pushed up its price. CPI inflation was 3.5% in September, and the Bank expects it to reach around 5% by the middle of 2027. The target is 2%.

The minutes say benchmark two-year fixed mortgage rates had already risen by nearly 0.5 points since early September. The next decision is on 17 December 2026.

Who's affected, and when

• Trackers follow Bank Rate, so they go up by 0.25 points. Nationwide's trackers rise on 1 December 2026, and Santander's on 3 December. Yorkshire Building Society's tracker rates go up on 29 November, but it says payments won't change until March 2027 unless you contact it.
• Standard variable rates don't have to follow Bank Rate, but the big lenders have moved. Nationwide's Standard Mortgage Rate goes from 6.49% to 6.74%, and its Base Mortgage Rate from 5.75% to 6%, both from 1 December. Santander's SVR rises by 0.25 points to 6.75% from 3 December, and its Follow-on Rate to 7.25%. Yorkshire Building Society says its SVR is under review.
• Fixed rates stay the same until the deal ends. The risk is at remortgage time.

Santander says its letters arrive at least 7 days before the first new payment is due.

The sums

We used the standard repayment formula: monthly payment = loan × r ÷ (1 − (1 + r)^−n), where r is the yearly rate divided by 12 and n is the number of months left.

Tracker example. £200,000 left to pay over 25 years (300 months), on a tracker at Bank Rate plus 0.75 points. That's 4.50% before the rise and 4.75% after.

• Before: r = 0.045 ÷ 12 = 0.00375. (1.00375)^−300 = 0.32534. £200,000 × 0.00375 = £750. £750 ÷ (1 − 0.32534) = £1,111.66 a month.
• After: r = 0.0475 ÷ 12 = 0.0039583. (1.0039583)^−300 = 0.30570. £200,000 × 0.0039583 = £791.67. £791.67 ÷ (1 − 0.30570) = £1,140.23 a month.
• Difference: £28.57 a month, or £342.84 a year.

SVR example. £150,000 left over 20 years on Nationwide's Standard Mortgage Rate. At 6.49% the payment is £1,117.48 a month. At 6.74% it's £1,139.65. That's £22.17 a month more, or £266.04 a year.

Remortgage example. If your fix ends soon, every half point matters. On £200,000 over 25 years, a new deal at 5.00% instead of 4.50% costs £1,169.18 a month instead of £1,111.66. That's £57.52 a month, or £690.24 a year. These two rates are examples to show the size of the gap, not quotes from a lender.

What to do now

1. Check your mortgage type and end date on your statement or in your lender's app.
2. If your fix ends in the next six months, look now. Under the government's Mortgage Charter, lenders that have signed it let you lock in a deal up to six months ahead and ask for a better like-for-like deal right up until it starts.
3. If you're on an SVR, switch. Ask your lender for its product transfer rates, and ask a fee-free broker to compare the whole market.
4. If the new payment is a stretch, call your lender early. Under the Charter, contacting a signed-up lender for help won't affect your credit file. If you're up to date, you can move to interest-only for six months or extend your term, without a new affordability check. Both cost more in total.

Questions

I'm on a fixed rate. Should I worry? Not today. Start looking up to six months before your deal ends.

Could rates go up again? The Bank says policy is not on a fixed path and it will decide meeting by meeting. The next decision is on 17 December 2026.

Ways to save

Cashback Remortgages is an FCA-regulated broker (FCA firm reference 753785) that charges no broker fee. It offers cashback of up to £1,500 on eligible remortgages, subject to conditions. Lender, valuation and legal costs may still apply. Your home may be repossessed if you do not keep up repayments on your mortgage.

Before the decision, we explained what a hold, a rise or a cut would mean. Rates were checked on the lenders' own pages on 8 November 2026.

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Sources: Bank of England, Bank Rate, 8 Nov 2026, Bank of England, Monetary Policy Summary and minutes, 5 Nov 2026, Bank of England, Effective interest rates, September 2026, Nationwide, base rate changes, 8 Nov 2026, Santander, base rate information, 8 Nov 2026, Yorkshire Building Society, rate change, 8 Nov 2026, GOV.UK, Mortgage Charter, 8 Nov 2026, Cashback Remortgages, 8 Nov 2026