Interest rates are rising again: what it means for your mortgage, and how a local adviser can help

On 5 November 2026 the Bank of England raised its base rate from 3.75% to 4%. It's the first rise since 2023, and the Bank says it's because higher energy prices are pushing inflation up again. The next decision is on 17 December, and many economists expect more rises in 2027.

If you've got a mortgage, or you're hoping to buy, that's probably not the news you wanted. Here's what it means in plain English, and why now is a good time to talk to a mortgage adviser.

What it means for you

If you're on a tracker or variable rate

Your rate usually follows the base rate, so your monthly payment is likely to go up within a month or two. Your lender should write to you with the new amount.

If you're on a fixed deal

Nothing changes until your deal ends. But when it does, the jump can be a shock, especially if you fixed when rates were very low.

As a rough example, someone with £200,000 left to pay over 25 years who fixed at 1.5% a few years ago pays about £800 a month. At 4.75%, the same mortgage costs about £1,140 a month: around £340 more. Even a quarter of a percent makes a difference: from 4.5% to 4.75% adds about £30 a month on that same mortgage.

These figures are just examples to show how rates affect payments, not real deals.

If you're buying for the first time

Lenders check you could still afford your payments if rates rose further. When rates go up, that can mean you're able to borrow a bit less than you'd hoped, so it's worth knowing where you stand before you start viewing.

Don't wait for the renewal letter

If your fixed deal ends in the next six months or so, you can usually line up a new one now. If you don't, many mortgages move onto the lender's standard variable rate, which is often much higher than the deals available to new customers.

Starting early gives you time to compare, and if rates fall before your deal starts, a good adviser can often move you onto the better rate.

How a mortgage adviser helps

A mortgage adviser looks at your situation and finds a deal that suits you. They can:

• Compare deals from lots of lenders, including some you can't get by going direct
• Do the legwork: paperwork, chasing the lender and keeping things moving
• Help with trickier situations, like being self-employed, having a few credit problems in the past, or buying an unusual property
• Keep an eye on rates between now and when your new deal starts

Questions to ask an adviser

• Do you look at the whole market, or only some lenders?
• How are you paid? Some charge a fee, some are paid by the lender, some both. A good adviser will tell you up front.
• Are you regulated? Mortgage advisers must be authorised by the Financial Conduct Authority (FCA). You can check anyone for free at register.fca.org.uk.

Free help if you're worried

If you're struggling with payments, talk to your lender as early as you can. They have to help you look at options. MoneyHelper, the free government-backed service, also has clear guides and free advice.

Talk to a local mortgage adviser

Carl Derbyshire and Sarah Mallard are both local mortgage advisers on Connect Me With. You can read their reviews and get in touch through their listings below.

Find a mortgage adviser near you

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This article is general information, not financial advice. Your circumstances are personal to you, so speak to a qualified mortgage adviser before making a decision.

Your home may be repossessed if you do not keep up repayments on your mortgage.