The Bank of England's Monetary Policy Committee announced its decision on Bank Rate today. What it means for you depends almost entirely on the type of mortgage you hold.
What did the Bank of England decide today?
Consumer Prices Index inflation was 3.5% in the 12 months to September 2026, up from 3.1% in August (ONS, 21 October 2026) — well above the Bank of England's 2% target, set by the Government and measured by the Consumer Prices Index (Bank of England, October 2026). Today the Committee voted 8–1 to raise Bank Rate to 4.00%, with one member preferring a larger rise to 4.25% (Bank of England, 5 November 2026).
Does this affect tracker and variable-rate mortgages?
Tracker mortgages move directly with Bank Rate, so borrowers on them will see their rate change, typically within days of a decision: today's rise means higher monthly payments, and if Bank Rate falls later, payments come down. Standard variable rates are at each lender's discretion — many follow in the same direction, though not by the same amount or on the same timetable. If you are on either, it is worth checking your mortgage terms to understand exactly how your lender's rate is calculated, and by how much your monthly payment may change.
What about borrowers on a fixed rate?
If you are on a fixed deal, today's decision changes nothing immediately — your rate is locked until the deal ends. The question worth thinking about is what happens when it does. Fixed-rate products are priced on swap rates, which markets had already largely moved in anticipation of this decision.
If my fix is ending soon, what should I consider?
Remortgaging before your current deal ends can let you lock in a new rate now, though you need to weigh any early repayment charges against the potential saving — and those two figures need to be compared on the same basis to mean anything. Doing nothing and moving on to your lender's standard variable rate carries its own cost. Neither path is automatically right; it depends on your numbers.
A whole-of-market broker can search across the market, model both options against your actual mortgage, and help you understand the trade-offs without pushing you toward a particular outcome.
What happens to rates from here?
That is genuinely unknown. The MPC sets Bank Rate meeting by meeting, based on data available at the time. CPI inflation at 3.5% (ONS, 21 October 2026) remains above the Bank of England's 2% target (Bank of England, October 2026), but the direction of travel from here is not certain. The next Bank Rate decision is due on 17 December 2026 (Bank of England, 5 November 2026).
What you can do is make sure your own mortgage is structured sensibly for your circumstances, whatever the market does next.
If you want to understand your options — whether you are on a tracker, approaching the end of a fix, or simply want to know where you stand — speak to a qualified mortgage adviser who covers the whole market and can look at your specific situation.
Figures quoted are illustrative only. Your actual outcome will depend on your individual circumstances, loan size, term, and the products available to you.
This is not financial advice. Speak to an independent mortgage broker before making any decisions.
Lawes Financial Limited (FRN 1046161) is an appointed representative of Andrew Charles Consulting Ltd, which is authorised and regulated by the Financial Conduct Authority (FRN 304904).