By John Phillips, CEO of Just Mortgages and Spicerhaart

The Bank of England has increased its base rate from 3.75% to 4%. If you are saving for your first home, planning a move or approaching the end of your mortgage deal, you may be wondering what this means for your next steps.

My message is straightforward: take the announcement seriously, but look beyond the headline. Its impact will depend on your mortgage, your circumstances and what you are looking to do.

Why have interest rates increased?

Inflation remains a concern. The Bank has highlighted rising global energy prices linked to the ongoing Middle East conflict, alongside stronger economic activity than expected, as reasons for its decision.

Increasing interest rates is intended to help bring inflation back towards the Bank’s 2% target. However, the Bank has made clear that future decisions will depend on the evidence, rather than following a predetermined path.

Will all mortgage rates go up?

Mortgage rates don’t always move in step with the Bank of England’s base rate.

Fixed mortgage pricing also reflects financial market expectations about future interest rates and lenders’ funding costs. Competition between lenders plays a part too. That means fixed mortgage rates can move before a Bank announcement, and do not necessarily increase by the same amount when the base rate rises.

For existing borrowers, the type of mortgage you have matters:

• Fixed rate: Your interest rate and scheduled monthly repayments will stay the same during your fixed-rate period.
• Base-rate tracker: Your rate will normally rise in line with the base rate, subject to your mortgage terms.
• Standard variable rate: Your lender decides whether, when and by how much to change its rate. It does not have to mirror the Bank’s decision.

First-time buyers: understand your budget before ruling yourself out

A rate rise can feel like another obstacle when you are working towards your first home. However, it does not automatically mean buying is out of reach.

Start with what you could comfortably afford each month, allowing for household bills, other commitments and some breathing space. Then explore how your deposit, income and circumstances affect your mortgage options.

For those buying in England, the government’s new Your First Home scheme could provide another route to consider. Expected to open for applications in February 2027, it will offer eligible first-time buyers purchasing a qualifying new-build home a 20% government equity loan, alongside a deposit of at least 2.5% and a repayment mortgage. Household income limits and local property price caps apply. The equity loan is interest-free for five years, with interest payable afterwards, so it is important to understand the longer-term costs and repayment terms.

An adviser can help you understand whether the scheme could suit your circumstances and compare your mortgage options. Even if your purchase is some way off, a conversation now could help you prepare.

Home movers: check what happens to your existing mortgage

If you are planning a move, find out whether your current mortgage can move with you.

Some mortgages are portable, meaning you may be able to transfer your existing deal to another property. This remains subject to your lender’s approval and checks. Any additional borrowing may be offered at a different rate.

It is also important to check for early repayment charges and compare the full cost of keeping your current arrangement against taking a new mortgage. Understanding this early can help you set a realistic budget for your next home.

Remortgaging: give yourself time to explore

If your current deal ends within the next six months, it is sensible to start reviewing your options.

You can compare what your existing lender offers with deals available elsewhere, taking account of fees, eligibility and any early repayment charges. Starting early gives you time to prepare for a possible change in monthly payments and avoid drifting onto your lender’s standard variable rate without reviewing it.

If you are concerned about affording your repayments, contact your lender as soon as possible to discuss support.

Focus on your next step

There is still uncertainty ahead, but a base rate rise does not tell the whole story about your mortgage options.

At Just Mortgages, our network of more than 650 advisers supports people buying their first home, moving and reviewing their existing mortgage. A conversation can help you understand what this announcement means for you and make an informed decision about what comes next.

 

Book an appointment with your local mortgage and protection adviser.

Information correct as at 5th November 2026. Mortgage availability and eligibility depend on individual circumstances and lender criteria.

Media enquiries, please email media.enquiries@spicerhaart.co.uk

Just Mortgages is a trading name of Just Mortgages Direct Limited which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.

Approved by The Openwork Partnership on 05/11/2026