Month: November 2026

You may have found the right property, but would your mortgage still feel affordable if your monthly repayments increased? The latest interest rate announcement brings that question into focus for buyers planning their next move.

On 5 November 2026, the Bank of England announced an increase in its base rate from 3.75% to 4%, following a vote by its Monetary Policy Committee. Governor Andrew Bailey indicated that a further increase could be necessary if inflationary pressures persist. The Bank highlighted rising energy prices associated with the Middle East conflict as a factor behind its decision.

For those buying, selling or considering a remortgage, the announcement raises questions about borrowing costs, savings and how comfortably a property purchase fits within their finances.

What does the base rate mean for your mortgage?

The Bank of England’s base rate influences the rates lenders charge on mortgages. However, a base rate of 4% does not mean mortgages will be offered at 4%, or that every borrower’s repayments will increase immediately.

The impact depends on the mortgage terms. Some variable rates may rise, while existing fixed rates generally remain unchanged until the agreed fixed period ends.

What should buyers consider?

For buyers, affordability goes beyond mortgage approval. Monthly repayments should leave room for everyday spending, property maintenance and unexpected costs, including possible increases in repayments when rates change or a fixed deal ends.

When comparing mortgages, buyers should consider fees, the length of the deal and any early repayment charges alongside the headline rate. A mortgage adviser can help assess the available options.

If a purchase is already underway, buyers should check their mortgage offer’s conditions and expiry date with their lender or broker, particularly if completion is delayed, and keep their solicitor informed of any changes to funding.

Could there be a benefit for savers?

Higher interest rates may bring better returns on savings, potentially helping those building a deposit or holding funds for a future property purchase. However, banks and building societies do not necessarily pass on the increase automatically or in full, so the benefit will depend on the account and provider.

For prospective buyers, this creates a mixed picture. Savings may earn more interest, but the additional return may not outweigh higher mortgage costs. Buyers should therefore consider both sides when reviewing their budget and ensure their savings remain accessible when needed for the purchase.

What might this mean for sellers?

Sellers may feel the effects indirectly as buyers review their budgets. Higher borrowing costs could influence how much buyers are willing to offer or how long they need to arrange finance.

However, a rate rise does not automatically mean lower prices or slower sales. The impact will depend on the property, local demand and the buyer’s circumstances. Keeping informed about the buyer’s funding position can help sellers plan realistic timescales.

Could rates rise again?

Andrew Bailey has signalled that another increase may be needed, but further rises are not confirmed. The Bank has emphasised that future decisions will depend on the evidence. Its next interest rate decision is scheduled for 17 December 2026.

For buyers and sellers, the announcement is a reason to revisit financial assumptions and keep funding arrangements under review. The rate change itself does not alter the conveyancing process, but it may affect the financial decisions surrounding a move.

Chan Neill Solicitors will continue to monitor developments and share relevant updates. Our residential conveyancing team assists clients with the legal aspects of buying, selling and remortgaging property, working alongside their lenders and mortgage advisers throughout the transaction.