Bank of England raises base rate to 4% in three-year high

Summarised from BristolLive's report · Updated 5 Nov, 22:10 · Archive

The Bank of England has raised the base rate by 0.25 percentage points to 4%, the first increase in more than three years.

The Bank of England raised its base rate by 0.25 percentage points to 4% on Thursday, marking the first increase in interest rates for more than three years. The move will have immediate effects for homeowners on tracker mortgages, who will typically see monthly payments rise by around £30.72, according to UK Finance. Around 510,000 homeowners are on tracker mortgages, representing about 6% of all outstanding homeowner mortgages.

Those on standard variable rates may face smaller increases of £14.28 per month if their lenders pass on the full base rate rise. However, the vast majority of homeowners—about 87%—are on fixed-rate mortgages and will not feel the immediate impact. Around 700,000 fixed-rate mortgages expire in the second half of this year, with a further 2.3 million due to expire in 2027, meaning many homeowners will face higher rates when their deals end. UK Finance is encouraging anyone concerned about increased payments to contact their lender for support.

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• Immediate £30 extra cost for 510,000 in UK after bank decision todayThe change that was confirmed on Thursday lunchtime will hit some sooner than othersBristolLive · 5 Nov, 13:10

In this story: Bank of England · UK Finance · UK

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