The Bank of England raised Bank Rate from 3.75% to 4% on 5 November 2026, an increase of 0.25 percentage points. For a landlord whose £200,000 interest-only mortgage tracks Bank Rate in full, that adds £41.67 a month once the contractual change takes effect; an existing fixed rate stays unchanged until its deal ends.
This UK update uses the Monetary Policy Summary published on 5 November, read after the noon release. Mortgage examples below are illustrative, not product quotes.
What did the Bank of England decide in November 2026?
The MPC voted eight to one for a quarter-point rise to 4% at its meeting ending on 4 November. The dissent was for a bigger increase: Catherine L Mann wanted a half-point rise to 4.25%. Nobody voted to hold.
That differs from the 17 September decision, when six members supported keeping Bank Rate at 3.75% and three wanted 4%. Today's announcement is a decision, rather than the forecast discussed in our October mortgage rates update.
Why did the MPC raise Bank Rate?
The Summary says persistent energy-price pressure now warrants tighter policy, with stronger-than-expected activity adding to the case. It still finds limited evidence of wider effects on prices and wages, but sees enough pressure ahead to act.
The latest observed inflation figure is 3.5% CPI inflation in the year to September, up from 3.1% in August, in the ONS release dated 21 October 2026. Transport, especially motor fuels, made the largest upward contribution to the change in the annual rate. September's figure is measured inflation; the Bank's projections describe what might come next.
The MPC also says future policy is not predetermined. Do not build a remortgage plan around an assumed sequence of rises or a promised date for cuts. Test the rates actually available to you and a less comfortable alternative.
How does a buy-to-let interest rate rise affect trackers?
A Bank Rate tracker normally passes the change through according to its contract, so check the margin and reset date before changing your payment forecast. A lender's managed or standard variable rate is different: it need not move by exactly the same amount.
The Mortgage Works' base-rate update, checked after the announcement on 5 November, says its trackers linked to Bank Rate rise by 0.25 points from 1 December 2026, in line with their terms. It is still reviewing its managed rate, which is not tied to Bank Rate. Other lenders set their own dates, so use your own lender's notice and mortgage terms.
Illustrative example: assume a £200,000 interest-only loan tracks Bank Rate plus a constant 2 percentage points, with no floor or cap affecting this change. The balance stays the same and fees are excluded.
| Position | Bank Rate | Illustrative mortgage rate | Annual interest | Monthly equivalent |
|---|---|---|---|---|
| Before the decision | 3.75% | 5.75% | £11,500 | £958.33 |
| After the contractual reset | 4.00% | 6.00% | £12,000 | £1,000.00 |
| Increase | 0.25 points | 0.25 points | £500 | £41.67 |
The calculation is £200,000 x 0.0025 ÷ 12 = £41.67, rounded. That is £500 more interest over a full year at the higher rate, before tax. Your first changed payment can differ because of timing and the lender's interest calculation. The illustration repays no capital.
Will fixed buy-to-let mortgage rates rise by 0.25 points too?
An existing fixed deal does not change just because Bank Rate rises, and today's decision does not establish a 0.25-point increase in every new fixed offer. TMW's update confirms that its fixed-rate interest and payments stay unchanged until the fixed deal ends.
For a new deal, compare dated lender quotes instead of adding today's change to an old market average. The rate, product fee, loan size and fixed period need to be considered together. A cheaper headline rate can still cost more over the period you expect to keep the loan.
Keep three numbers separate: the rate you pay now, the replacement rate you are offered and the lender's affordability stress rate. They answer different questions.
What should you check if your fix ends in 2026 or 2027?
Check the end date, early repayment charge and cost of the replacement deal before deciding how to respond. Today's rise does not itself alter the rate inside your current fix; the risk is what happens when that protection ends.
Gather these figures for each affected property:
- The outstanding balance and whether payments are interest-only or repayment.
- The fixed-rate end date and the date any early repayment charge stops.
- The lender's follow-on rate, rather than an assumed Bank Rate margin.
- A current product-transfer quote and a remortgage alternative, including fees.
- The rent and operating costs you expect to receive and pay during the new deal.
Use the buy-to-let mortgage calculator to compare monthly payments and fees. Our remortgaging guide covers the process, while the 2027 fixed-rate expiry checklist sets out the timing questions. Check current lender windows rather than assuming every offer lasts the same length of time.
Does the decision change your remortgage stress test?
It can affect the rates relevant to affordability, but 4% Bank Rate is not automatically your lender's stress rate. The interest coverage ratio, or ICR, compares rent with interest calculated using the lender's chosen assumptions.
The PRA's current underwriting statement, SS13/16, sets expectations for lenders within its scope. It also distinguishes qualifying remortgages without extra borrowing from loans that raise capital. That exemption does not guarantee acceptance or remove the lender's need to assess whether you can pay.
Lender criteria matter. TMW's income criteria, checked on 5 November, use different stress rates by product and borrowing purpose. Its personal higher-rate ICR is 160%, excluding HMOs, so the 145% used below is an assumption, not a universal higher-rate rule.
To extend the same £200,000 illustration, assume a 6% stress rate, independently of today's Bank Rate. Stressed interest is £1,000 a month. An assumed 125% ICR needs £1,250 monthly rent; an assumed 145% needs £1,450. These are arithmetic examples, not a lender offer or confirmation that your loan passes.
Read how ICR works, then enter the applicable assumptions in the mortgage stress test. Check loan-to-value and the lender's other criteria too.
How should you update your rental cashflow today?
Update loans that are affected now, then model the next fixed-rate expiries separately. In the tracker illustration, unchanged rent and other costs leave £41.67 less cash each month before tax once the higher rate applies.
Keep allowances for repairs, insurance, letting costs and empty periods alongside the mortgage payment. Passing an ICR test does not establish that a property leaves enough cash for those bills. Avoid assuming that a future rent increase will arrive in time to cover a higher payment.
Padlord records each property's fixed-rate end date and lets you model a replacement rate's effect on monthly cashflow. Use the actual balance and lender terms, then check which property needs attention first. The useful next step is a dated, property-by-property calculation, rather than a prediction about the next MPC meeting.
General information as at 5 November 2026, not financial or legal advice.
