Bank of England raises interest rates to 4%

Summarised from 4 outlets · Updated 6 Nov, 08:31 · Archive

The Bank of England has raised its base rate to 4%, increasing tracker mortgage payments by an average £30.72 a month.

The Bank of England raised its base rate from 3.75% to 4% on Thursday, adding immediate pressure to household finances already strained by higher living costs.

Around 510,000 homeowners with tracker mortgages will see their monthly payments rise by an average of £30.72, according to UK Finance. These mortgages typically follow the Bank's base rate, so the increase takes effect almost immediately for these borrowers.

A further 470,000 homeowners on standard variable rate mortgages could also face higher payments if their lenders choose to pass on the 0.25 percentage point increase. If they do, the average borrower would pay an extra £14.28 a month, though individual lenders will decide whether to pass on the rise in full.

The 87% of homeowners on fixed-rate mortgages will not be immediately affected. However, millions are approaching the end of their current deals and will face more expensive repayments when they remortgage at the new rate environment. Around 700,000 fixed-rate mortgages are due to expire in the second half of this year, with a further 2.3 million expiring in 2027.

Andrew Montlake, chief executive of mortgage broker Coreco, said the decision would put further pressure on household budgets. He described the rise as 'another turn of the financial screw' for families, noting that tracker borrowers will see immediate increases while those coming off fixed deals face a mortgage market already repriced for higher rates. He advised that households should not panic.

How it is being reported

• Bank of England raises interest rates rise - how much will mortgage payments go up?The Bank of England has raised interest rates to 4%, increasing payments for tracker mortgage borrowers by an average £30.72 a month.Gazette & Herald · 6 Nov, 07:33
• Bank of England raises interest rates rise - how much will mortgage payments go up?The Bank of England has raised interest rates to 4%, increasing payments for tracker mortgage borrowers by an average £30.72 a month.Swindon Advertiser · 6 Nov, 07:33
• Bank of England raises interest rates rise - how much will mortgage payments go up?The Bank of England has raised interest rates to 4%, increasing payments for tracker mortgage borrowers by an average £30.72 a month.This Is Wiltshire · 6 Nov, 07:33
• Bank of England raises interest rates rise - how much will mortgage payments go up?The Bank of England has raised interest rates to 4%, increasing payments for tracker mortgage borrowers by an average £30.72 a month.Wiltshire Times · 6 Nov, 07:33

In this story: Bank of England · UK Finance · Andrew Montlake · Coreco

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log