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Mortgage rates hit three-year high ahead of Bank of England base rate decision

ended 04. November 2026

Lenders have been repricing ahead of the Bank Base Rate (BBR) vote, causing fixed mortgage rates to hit a three-year high, according to Moneyfactscompare.co.uk analysis.

A challenging environment to reprice fixed rate mortgage deals created a mix of activity from lenders over recent weeks, a BBR hike of 0.25% is expected tomorrow.

Major lenders could pivot over the coming days if future pricing expectations stabilise. However, the lowest two-year fixed rates from Barclays, HSBC, Lloyds Bank, NatWest and Santander remain 0.44% higher on average versus the start of September.

The Moneyfacts Average New Mortgage Rate has hit a three-year high, rising to 5.89%, up from 5.83% at the start of October, last higher in November 2023 at 6.07%.

Over £2,000 added to mortgage repayments per year after 1% mortgage rate hike. The average two-year fixed mortgage rate has risen by 1.14% since January 2026, up from 4.83% to 5.97%, now its highest point since December 2023 (6.04%). This means the same mortgage of £250,000 over 25 years taken now, versus the start of 2026, would cost £169 more in monthly mortgage repayments, or £2,028 more per year.

Borrowers face an additional rise of around £440 to mortgage payments over 12 months. A 0.25% rise adds around £37 to monthly mortgage repayments, or £444 per year (based on a rate of 5.00%, rising to 5.25% - borrowing £250,000 over 25 years).

Questions for Newspagers

  1. What is your reaction to the high average mortgage rate at the moment?
  2. Is it affecting your business?
  3. What are your thoughts ahead of the BoE base rate decision tomorrow?

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5 responses from the Newspage community

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Tracey DixonVerified
Buy-to-Let Mortgage Specialist & Owner at Pure Mortgage and Protection
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Borrowers are feeling the rate decision before the Bank has even made it.

These figures make uncomfortable reading for households approaching remortgage. Higher repayments mean less breathing room, while first-time buyers face another squeeze on affordability.

For brokers, this means more work checking budgets, comparing options and revisiting deals as lenders reprice. The lowest headline rate is only part of the picture; fees and overall cost matter too.

Tomorrow’s decision won’t automatically dictate where fixed rates go next, because lenders price in expectations ahead of time. Borrowers need some stability, but anyone hoping one announcement will undo the recent increases could be disappointed.
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Nouran MoustafaVerified
Practice Principal & IFA at Roxton Wealth
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Mortgage rates reaching a three-year high is deeply concerning. We're talking about families paying over £2,000 more annually on the same mortgage compared with January.As an adviser, affordability is becoming an increasingly difficult conversation. Borrowers who could comfortably afford a mortgage earlier this year may now need to reconsider their budgets.Tomorrow's Bank of England decision is crucial. A 0.25% increase is widely expected, but fixed-rate lenders have already priced in much of that expectation.What matters more than tomorrow's announcement is what the Bank signals about future rates.If markets believe further increases are coming, mortgage pricing could remain under pressure.But borrowers shouldn't panic or assume every lender will increase rates immediately.My frustration is that households are paying the price for economic uncertainty they didn't create.My advice? Review your mortgage options early and don't gamble your financial security on rates falling.
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Toby QuanstromVerified
Director at Quanstrom Financial
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Borrowers waiting for tomorrow’s decision are waiting for news that’s already in the price. Lenders have repriced ahead of the vote, pushing the average new mortgage rate to 5.89%, a three-year high. The real risk isn’t a quarter-point rise, it’s doing nothing. Anyone with a deal ending in the next six months may be able to lock in a rate today and still move to a cheaper one if rates ease before completion. That could protect against a nasty surprise. We’re seeing more remortgage clients act early rather than gamble on the Bank.
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Tony SanchezVerified
Founder at Bridging Loan Directory
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“Higher mortgage rates matter to borrowers planning to repay a bridging loan through a residential remortgage. A deal that looked affordable when the bridging loan was arranged may need reassessing before the exit.

The question is whether the mortgage available now will cover the outstanding bridging balance, including accrued interest and fees, and remain affordable for the borrower. Waiting for a better rate can also mean paying more bridging interest.

Tomorrow’s decision won’t tell us exactly where fixed rates go next. Borrowers approaching the end of a bridging loan need their broker to check the available refinance, likely completion date and any shortfall now. An extension shouldn’t be assumed.”
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Stephen PerkinsVerified
Mortgage Broker and Managing Director at Yellow Brick Mortgages
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The three-year-high headline sounds alarming, but average mortgage rates do not tell the whole story. There are still fixed deals available well below the average, and we have actually seen several major lenders cutting selected rates this week.

Tomorrow’s Bank Rate decision matters, but fixed mortgage pricing is driven by much more than the base rate alone. Funding costs, swap rates and lender competition all play a part. For borrowers coming to the end of a deal, the sensible approach is still to secure a suitable rate early and keep reviewing it. If pricing improves before completion, there may be an opportunity to switch rather than gambling on one Bank of England decision.