The Bank of England has raised Bank Rate from 3.75% to 4%, increasing the UK’s benchmark interest rate by 0.25 percentage points. The decision, announced on 5 November 2026, matters to landlords whose rental-property costs include mortgage borrowing.
Eight members of the Monetary Policy Committee backed the increase to 4%. The remaining member wanted a larger rise to 4.25%. This follows the September decision to hold Bank Rate at 3.75%.
The Bank said prolonged high energy prices had increased the risk of inflation spreading through other prices and wages. It expects inflation, which reached 3.5% in September, to rise to around 5% by the middle of 2027. That is a forecast, rather than a confirmed outcome.
What this means for borrowing costs
Bank Rate influences the rates lenders charge, but it does not determine every mortgage rate. The Bank explains that lending rates can change for other reasons and may move by a different amount.
If you need to understand the effect on your rental property’s mortgage, check the loan terms and your lender’s latest payment information. Ask the lender to explain how and when any change applies to your loan. For advice about your own mortgage choices, speak to a suitably qualified mortgage adviser.
The Bank has not committed to a fixed course for future rates. Its next decision is due on 17 December 2026.
Sources
- Bank of England: November 2026 Monetary Policy Summary and Minutes, published 5 November 2026.
- Bank of England: Why have interest rates gone up in the UK?, updated 5 November 2026.
