Bank of England raises rate to 4%: what it means for your mortgage and savings

The Bank of England's Monetary Policy Committee (MPC) raised Bank Rate — the rate at which the Bank lends to commercial banks — from 3.75% to 4% on 4 November 2026. The decision was published on 5 November. It is the first rise after a pause: the rate was held in September.

How they voted

Eight of the nine committee members voted for the 0.25 percentage point rise. One, Catherine Mann, wanted a bigger move straight to 4.25%. The result was 8–1 in favour of the smaller increase.

ONLYWAY NEWSLIVEMarkets · 15.11Bank of England raises rate to 4%: what it means for your mortgage and savingsMoney · 15.11The missing pension top-up: how to reclaim HRP years for caringMoney · 14.11Energy standing charges: what you pay even at zero usageLaw · 14.11Exchanging a foreign driving licence: who can skip the tests and who cannotBooks · 14.11The Water-Babies by Charles Kingsley — bedtime book: extract, author and a journey to the placesUK & Politics · 14.11King's Award for Voluntary Service: 250 groups honoured across BritainMarkets · 14.11Brexit barriers hit profits for over half of UK food and drink exportersJobs & Business · 14.11Youth Guarantee: Biffa opens up to 2,000 jobs for young peopleLife · 14.11Compare schools online: how to choose your child's school in EnglandTravel · 14.11A quarter more vans, fewer buses: how travel in Britain has changedONLYWAY NEWS · appInstall the ONLYWAY NEWS appFresh UK news, classifieds, key dates and exchange rates on your home screen, one tap away. Free.NewsClassifiedsCalendarRates

Why they raised it

The main reason is inflation. The Consumer Prices Index (CPI) stood at 3.5% in the year to September 2026, against the Bank's 2% target. The Bank warns that dearer fuel and energy could push inflation to around 5% by mid-2027 before it falls. Raising the rate is meant to cool price growth.

What it means for your money

Bank Rate affects the cost of money across the country. For borrowers on a tracker or standard variable rate (SVR) mortgage, the monthly payment rises almost at once. Those on a fixed rate only feel it when they remortgage — and new deals are likely to be dearer.

For savers the news is better: banks usually lift savings rates after a rise, though not always in full or straight away. It is worth comparing easy-access and fixed savings deals.

Check your mortgage type

Look at your mortgage deal. A tracker is tied to Bank Rate and will change within weeks. A fixed rate is unchanged until it ends, but it is worth working out the cost of remortgaging in advance. An SVR is usually the most expensive option, and moving to a new fixed deal often saves money. A broker can help you compare without rushing.

And prices in the shops?

Rate changes work with a lag: economists reckon the full effect on prices and demand takes a year to 18 months. That is why the Bank looks at its forecast, not just today's figure. With the 2% target still far off, sharp cuts are unlikely soon.

If you are saving for a big purchase or a fixed-term deposit, today's rates are a reason to compare banks carefully — the gap between deals can be meaningful.

What next

Future decisions will depend on how inflation and the jobs market behave. The Bank stresses it is ready to move in either direction. The full minutes and forecast are in the November Monetary Policy Report.