Mortgage rates are rising: what it adds to your monthly payment, and what you can do

What the Bank of England did, and who it affects

At its meeting ending on 4 November 2026, the Bank of England's Monetary Policy Committee voted 8–1 to raise Bank Rate by 0.25 percentage points to 4%, announced on 5 November. One member, Catherine L Mann, voted for a 0.5 point rise. The Bank's reason is inflation: it says inflation has risen to 3.5% and it expects it to reach about 5% by mid-2027 as higher energy prices feed through, against its 2% target.

The Bank was careful about what comes next. On its Bank Rate page it says the increase 'shouldn't be seen as the first in an inevitable long sequence of hikes', though unless the conflict in the Middle East is resolved 'neither does it seem likely to be the last increase'. Its November summary puts it more simply: 'The next move could be up, down, or sideways.' The next decision is due on 17 December 2026.

Fixed-rate deals are priced on markets' expectations rather than Bank Rate itself, and those had already moved: the Bank's minutes note that benchmark two-year mortgage rates had risen by nearly 0.5 percentage points since the beginning of September.

Who feels it, and when, depends on the type of mortgage. The FCA's guidance is plain: on a tracker, 'you will already have seen an increase to your monthly payments'; on a variable rate, 'it's likely that your monthly payments have already been affected'; on a fixed rate, you 'won't immediately be affected', and rises matter when your deal ends or you want to remortgage. Your lender's letter or app will show your new payment and the date it starts.

What a rise adds to your monthly payment: worked examples

These are our own calculations, using the standard repayment formula for a capital and interest mortgage with 25 years left to run. They show a 0.25 point rise, from 4.75% to 5%, which is what a tracker set at Bank Rate plus 1 point would have done in November. Your own figures depend on your balance, your rate and the years left, so treat these as a guide, not a quote.

£100,000 owed: about £570 a month becomes about £585, so roughly £14 more a month.

£150,000 owed: about £855 becomes about £877, roughly £22 more.

£200,000 owed: about £1,140 becomes about £1,169, roughly £29 more.

£250,000 owed: about £1,425 becomes about £1,461, roughly £36 more.

On an interest-only mortgage the sum is simpler and a little higher: each 0.25 point adds about £21 a month for every £100,000 owed (£100,000 × 0.25% ÷ 12). A full percentage point is four times these figures, give or take: on a repayment mortgage the rise is slightly less than four times, because part of each payment is paying off the loan rather than interest.

Coming off a fix: the bigger jump

Nothing changes on a fixed rate until the deal ends. When it does, you move to your lender's standard variable rate unless you take a new deal, and the new payment reflects today's rates, not the ones you fixed at. For anyone who fixed several years ago at a much lower rate, that change can be far bigger than this month's 0.25 points.

As an illustration only (these are example rates, not today's best buys): moving from 2% to 4.5%, with 25 years left, takes a £150,000 mortgage from about £636 a month to about £834, roughly £198 more. On £200,000 it's about £848 to £1,112, roughly £264 more; on £250,000, about £1,060 to £1,390, roughly £330 more. Plug in the rate on an actual offer to see your own figure.

Knowing the number early is what makes it manageable. If your fix ends in the next six months, now is a good time to see what your lender will offer, and to look at your household budget with the new payment in it.

If you're on a tracker

A tracker follows Bank Rate at a set margin, so your payment rises with it and would fall with it. Check your offer or annual statement for three things: the margin above Bank Rate, any 'collar' (a minimum rate it won't drop below), and whether there's an early repayment charge if you leave during the deal. The FCA says an early repayment charge is usually a percentage of your balance that falls as the deal nears its end.

Whether to stay or switch to a fix is a judgement about certainty, not a bet you have to win. Nobody knows where rates go next, and the Bank itself says up, down or sideways. A fix gives you a known payment; a tracker gives you the cut if rates fall and the rise if they don't. If paying a charge to leave would cost more than the extra interest you're worried about, staying put and budgeting for the rise is often the calmer choice.

If you can afford to, overpaying while rates are higher cuts the balance the interest is charged on. Many deals allow some overpayment each year without a charge: check your lender's limit before you do.

If you're on your lender's standard variable rate

Your lender sets its standard variable rate (SVR) and decides whether, when and by how much it moves. It doesn't have to match a Bank Rate change, but the FCA says your payments have likely already been affected.

You're usually not stuck on it. The FCA says you should be able to switch to a new deal with your existing lender without passing an affordability check, unless you want to borrow more. Under the Mortgage Charter, lenders agreed to let customers who are up to date with payments switch to a new deal at the end of a fixed rate without another affordability check; the government says this covers 97% of the mortgage market. Moving to a different lender usually means a fresh affordability check, the FCA says.

If you're about to remortgage

The Mortgage Charter lets you lock in a deal up to six months before your current fix ends with lenders that have signed it; the UK's largest lenders agreed it with the government and the FCA, and GOV.UK lists every signatory. You can then ask your lender for a better like-for-like deal right up until the new term starts, if one becomes available; the Charter says the rate has to be finalised two weeks before. Ask your lender how far ahead it will let you book, as six months is the maximum, not a guarantee.

Compare the total cost, not just the headline rate: an arrangement fee can wipe out the saving of a slightly lower rate on a smaller mortgage. Staying with your lender (a product transfer) is usually quicker and, as above, generally needs no affordability check. Moving lender may find a cheaper rate, but involves a fresh check, and possibly valuation and legal work. A mortgage broker can compare lenders for you; ask how they are paid before you start.

If you leave a deal before it ends, expect an early repayment charge, the FCA warns. Booking your next deal ahead, to start when the current one ends, avoids one.

If the new payment is hard to meet

Talk to your lender before you miss a payment. The FCA says to contact your lender as soon as possible if you're worried, and that 'simply talking to your lender won't affect your credit file'. All lenders signed up to the Mortgage Charter agreed to the same. The FCA's guidance for lenders, in force since 4 November 2024, expects support tailored to your circumstances, and covers people who are worried about their payments as well as those already struggling.

Under the Charter, if you're up to date with payments you can ask to switch to interest-only payments for six months, or to extend your mortgage term to lower your payments, with the option to go back to your original term within six months, all without a new affordability check or any effect on your credit score. The government is clear about the trade-off: payments after the support may be higher than they otherwise would have been, and you'll pay more over the life of the mortgage. As our own example: extending a £150,000 mortgage at 5% from 25 to 35 years cuts the payment by about £120 a month, from about £877 to £757, but adds roughly £55,000 of interest over the full term. It buys breathing space; it isn't free.

Lenders can also offer other options, such as a temporary payment deferral or part interest-only, part repayment. The Charter also says that, with signatory lenders, you won't be forced to leave your home without your consent in less than a year from your first missed payment, except in exceptional circumstances. These Charter commitments don't apply to buy-to-let mortgages. The government's own advice still stands: if you can meet the new payment, keep paying it, because that always means paying less interest overall.

If you get Universal Credit, income-related Employment and Support Allowance or Pension Credit, you may be able to get Support for Mortgage Interest (SMI). GOV.UK says it's a loan, normally paid straight to your lender, that usually helps with the interest on up to £200,000 of your mortgage (£100,000 if you're on Pension Credit), and is repaid with interest when you sell or transfer your home. On Universal Credit it can start after you've had the benefit for three months in a row. Free, independent advice is available from MoneyHelper, Citizens Advice and Shelter, which GOV.UK points to; it costs nothing, and you should never need to pay anyone to talk to your lender for you.

A calm plan for the next month

Find three numbers: your mortgage type, your rate and when your current deal ends. They're on your annual statement, your lender's app or your offer document.

Work out the change: use the examples above or your lender's figures, and put the new payment into your monthly budget now, rather than when the first higher payment leaves your account.

If your fix ends within six months: ask your lender what it will offer and when you can book it, and compare with the wider market or a broker.

If it looks tight: call your lender first. Then check what other household costs you could cut or claim help with, so the mortgage isn't the only thing taking the strain.