The Bank of England’s Monetary Policy Committee (MPC) voted 8–1 on 4 November 2026 to raise Bank Rate by 0.25 percentage points, to 4%, up from 3.75% set in September — the rate’s highest level since the Committee last raised it. One member, Catherine Mann, voted for a larger 0.5 percentage point increase, to 4.25%. The Committee cited a continuing conflict in the Middle East, now in its ninth month, which has pushed UK CPI inflation to 3.5% in September and is projected to push it to around 5% by the middle of 2027, according to the Bank’s own published minutes.
The Committee said monetary policy is “not on a pre-set path” and will keep assessing the evidence meeting by meeting, watching in particular whether higher energy costs feed through into wages and other prices. Average two-year mortgage rates have already risen by nearly 50 basis points since the start of September, the Bank noted, and the median market expectation is for Bank Rate to reach 4.25% by February 2027. The next rate decision is due on 17 December 2026.
For anyone holding a UK mortgage — including overseas buyers and buy-to-let landlords who finance UK property from abroad — a higher Bank Rate typically feeds through to lender pricing on new and remortgaged loans, adding to a UK mortgage market where rates were already holding near 6% before this decision. The Bank’s minutes do not forecast a specific path for high-street mortgage rates; lenders set those individually in response to the wider rate and swap-rate environment.
References
Bank of England – Bank Rate Increased to 4%: November 2026 Monetary Policy Summary and Minutes
