Mortgage Rates November 2026
What’s happening and what are the latest forecasts?
With the Bank of England increasing interest rates and ongoing uncertainty in global financial markets, many people are wondering what this means for their monthly mortgage payment.
Mortgage rates have changed frequently in recent months, with lenders adjusting their products in response to inflation, economic forecasts and wider global events.
In our latest article, we look at why rates are changing and what we are expecting over the coming months.
At a glance: What is happening with Mortgage Rates
- The Bank of England increased the base rate to 4% on 5th November 2026
- Rising energy prices and inflation concerns are influencing expectations for future base rate rises
- Fixed mortgage rates are also affected by swap rates, which change independently of the base rate
- Mortgage lenders are continuing to review their pricing, with some increasing rates while others have recently made reductions.
- If you’re buying a property or approaching the end of your mortgage deal, getting advice early can help you understand your options.
Why has the Bank of England increased interest rates?
On 5th November 2026, the Bank of England increased the base rate from 3.75% to 4%, a decision which was largely driven by renewed concerns about inflation.
Inflation is the rate at which the prices of everyday goods and services increase. The Bank of England aims to keep inflation at around 2%, but the latest figures show that it reached 3.5% in September.
One of the biggest contributing factors has been the ongoing conflict in the Middle East, which has disrupted global energy supplies and pushed up oil and gas prices.
While many question it’s effectiveness, increasing the base rate is one of the tools the Bank of England uses to try to bring inflation under control.
Will the Bank of England increase rates again?
In its November forecast, the Bank of England predicted that inflation could reach around 5% by the middle of 2027. It is hoped that inflation will then gradually fall.
Much will depend on what happens to global energy prices, how quickly inflation responds and the wider performance of the UK economy.
If inflation remains higher than expected, the Bank of England may decide that further interest rate increases are necessary. However, if inflationary pressures ease or the economy weakens, the outlook could change.
Why are mortgage rates changing independently of the base rate?
One of the most common misconceptions about mortgage rates is that they move directly in line with the Bank of England’s base rate.
The Base Rate is only part of the picture and mortgage rates are heavily influenced by something called swap rates.
Swap rates are financial market rates that help lenders determine the cost of providing fixed rate mortgages. Because of swap rates, lenders can increase or decrease their fixed mortgage rates even when the base rate hasn’t changed.
Global events have created considerable uncertainty in financial markets during 2026. As these predictions change, swap rates have been moving quickly.
What’s happening with mortgage rates right now?
The mortgage market has experienced considerable movement, particularly with fixed rate products.
Many lenders have increased their mortgage rates in response to higher funding costs and concerns about future inflation.
However, some lenders have also recently reduced selected mortgage rates as market conditions have shifted and competition for mortgage business continues.
This means that, although the overall cost of borrowing has increased, individual lenders and products aren’t necessarily moving in the same direction.
It’s one of the reasons why we advise clients to compare mortgages to understand how different lenders are responding.
What does this mean for your mortgage?
The impact will depend on the type of mortgage you currently have.
If you have a fixed rate mortgage, your interest rate and monthly repayments won’t change during your existing fixed rate period. However, the rates offered to you when your deal ends will be different.
If you have a tracker mortgage, your interest rate will generally move in line with changes to the Bank of England base rate. This means your payments could increase following the latest announcement, depending on your mortgage terms.
If you’re on a lender’s standard variable rate, your lender may choose to increase your interest rate, although these changes don’t necessarily happen automatically or by the same amount as the base rate.
If you’re buying a property or remortgaging, the changing market makes it particularly important to research your options fully.
Should you choose a fixed or tracker mortgage?
With uncertainty surrounding future interest rates, many borrowers are considering whether a fixed or tracker mortgage would be more suitable.
Tracker mortgages can currently offer lower initial rates than some comparable fixed rate options. They can also provide more flexibility, depending.
However, your monthly repayments could increase if the Bank of England raises interest rates further.
Fixed rate mortgages offer greater certainty. Your interest rate and monthly repayments are protected from market movements for the duration of the fixed rate period, making it easier to plan your household budget.
The choice for you will depend on your circumstances, priorities and how comfortable you are with the possibility of changing mortgage payments.
How Your Mortgage Expert can help
At Your Mortgage Expert, we’re keeping a close eye on changes to mortgage rates, lenders’ criteria and wider market developments.
Our role is to help you understand what’s happening, explore the mortgage products available to you and find an option that suits your individual circumstances.
If your current mortgage deal is due to end within the next six months, it’s worth getting in touch early. Many lenders allow you to arrange a new deal several months before your existing mortgage expires.
As mortgage brokers, we have access to both high street and specialist lenders who aren’t available directly to the public, giving you more choice when looking for a mortgage.
Whether you’re remortgaging, buying your first home or moving house, we’re here to help you make informed decisions with confidence.
Contact our experienced team on 01722 322683 or get in touch to discuss your mortgage.
