The Bank of England has raised Bank Rate from 3.75% to 4%. Here’s what it means for homeowners, buyers, sellers and landlords in Poole and Bournemouth.
On Thursday 5 November 2026 the Bank of England raised Bank Rate (often called the base rate) by 0.25 percentage points, from 3.75% to 4%. It’s the first rise in more than three years. Rates had been held at 3.75% since December 2025. Eight of the nine members of the Monetary Policy Committee voted for the rise, and one wanted a bigger increase to 4.25%.
Why rates have gone up
Inflation has been climbing again. Prices rose by 3.5% in the 12 months to September 2026, up from 3.1% in August and well above the Bank’s 2% target. Higher fuel and energy costs linked to the conflict in the Middle East are the main cause. The Bank said there is now enough inflationary pressure “in the pipeline” to justify a rise.
Governor Andrew Bailey said the increase shouldn’t be seen as the first in an inevitable long run of rises, but that another one is possible unless the conflict is resolved. The next decision is due on Thursday 17 December 2026.
If you already have a mortgage
- Tracker mortgages follow Bank Rate, so payments go up straight away. As a guide, a 0.25 point rise adds about £15 a month for every £100,000 you owe.
- Standard variable rates (SVRs) and other variable deals are likely to rise too, by up to 0.25 points, depending on your lender.
- Fixed-rate mortgages don’t change until your fix ends. If yours ends in the next three to six months, now is a good time to speak to a mortgage adviser. Many lenders let you secure a new deal months in advance.
If you’re buying
Fixed mortgage rates are set by what lenders expect to happen to rates in future, not by Bank Rate alone. Many lenders had already priced this rise in, so fixed rates had risen before today’s announcement. Moneyfacts puts the average new mortgage rate at 5.89%, the highest since November 2023. Some brokers think fixed rates may not jump much further straight away, and some lenders have recently trimmed their rates.
If you’re planning to buy, it makes sense to get a mortgage agreement in principle now so you know your budget, and to talk to a broker about how long you can hold an offer for. If you’re a first-time buyer, our Autumn Budget guide explains the new Your First Home scheme, which opens for applications in February 2027.
If you’re selling
Higher borrowing costs can make buyers more careful about price. That makes it even more important to set the right asking price from the start. Homes that are priced well still sell. Overpriced homes tend to sit on the market and end up being reduced. A buyer with a mortgage already agreed is worth more to you than ever, so ask about a buyer’s position when you consider offers.
If you’re a landlord
Landlords on tracker or variable buy-to-let mortgages will see their costs rise straight away. Combined with the higher tax on property income from April 2027, now is a good time to review your finances and your rents. Our lettings team can tell you what similar homes are renting for locally.
If you’re a saver
Savings rates should rise, although banks may be slow to pass the full increase on. Top easy-access accounts are already paying more than 4.5%. If you’re saving for a deposit, it’s worth checking you’re getting a good rate.
Talk to us
A change in rates doesn’t have to change your plans, but it helps to know where you stand. If you’re thinking about moving, our Poole, Bournemouth and Verwood teams will give you an honest, no-obligation valuation and tell you how homes like yours are selling right now. Call Oakdale on 01202 681113, Winton on 01202 512348 or Sam Garlick in Verwood on 07359 667183, or contact us online.
This article is general information, not financial advice. Speak to a qualified mortgage adviser about your own circumstances.
Sources
MoneySavingExpert, Bank of England hikes base rate to 4%, 5 November 2026: moneysavingexpert.com
MoneyWeek, Bank of England raises interest rates, 5 November 2026: moneyweek.com
Mortgage Solutions, Bank of England hikes base rate to 4%, 5 November 2026: mortgagesolutions.co.uk
Bank of England, Monetary Policy Committee dates for 2026: bankofengland.co.uk