Bank of England to raise rates to 4% amid inflation

Business Nov 05, 2026

For the first time in more than three years, the Bank of England is set to raise interest rates today, bumping them from 3.75% to 4%.

The main reason? Inflation is running high, thanks in part to global issues such as tensions in the Middle East pushing up fuel prices.

Tracker mortgage payments could rise £31

If you have a tracker or variable-rate mortgage, expect your monthly payments to go up (tracker holders might see about £31 more each month).

Fixed-rate deals won't change right now, but renewing could get pricier, with average two- and five-year fixed rates now close to 6%.

Even if you're just starting out with loans or savings, these changes could shape what you pay or earn in the months ahead.