Not in the immediate term. On 5 November 2026 the Bank of England raised the base rate from 3.75% to 4% because inflation rose to 3.5% in September. Average fixed rates had already climbed to around 6%. Rates could ease once inflation falls, but nobody can time that, so the priority is to secure a rate early and keep the option to switch if prices improve.
01Where rates are now
| Measure | Rate | Source |
|---|---|---|
| Bank of England base rate | 4.00% | Bank of England, 5 Nov 2026 |
| Average two-year fixed | 5.97% | Moneyfacts, Nov 2026 |
| Average five-year fixed | 6.00% | Moneyfacts, Nov 2026 |
| Average standard variable rate | 7.13% | Moneyfacts, Nov 2026 |
The rise was the first since the Bank started cutting in 2024. It held rates at 3.75% from December 2025 until energy-driven inflation linked to the conflict in the Middle East pushed prices up again. The next decision is due on 17 December 2026.
02Why fixed rates moved before the Bank did
Fixed mortgage rates follow swap rates, which reflect where markets expect the base rate to go. Lenders priced in the November rise weeks before it happened, which is why fixed rates reached a three-year high even before the announcement. Trackers and standard variable rates move after the decision, usually within days.
03Who is affected
- Tracker borrowers see payments rise almost immediately, by roughly £15 a month for every £100,000 borrowed for this 0.25% rise.
- Borrowers on a standard variable rate are likely to see their lender pass on the rise. At over 7%, an SVR is usually the most expensive place to be.
- Fixed-rate borrowers are protected until their deal ends, but anyone whose fix ends in the next six months should act now.
- Buyers may find they can borrow less than earlier in the year, because affordability stress tests use higher rates.
04What to do now
Secure a rate early. Most lenders let you lock in a new deal up to six months before your current one ends. If rates fall before completion, a good broker can switch you to the cheaper deal. If they rise, you are protected.
Weigh up the term of the fix. With two-year and five-year rates almost identical, the choice is about flexibility versus certainty. Our guide to two-year versus five-year fixes sets out the trade-offs.
Avoid drifting onto the SVR. On a £300,000 repayment mortgage over 30 years, the difference between 6% and an SVR of 7.13% is about £223 a month.
The figures above are averages. Better rates are available for larger deposits and strong credit profiles. Speak to us for a current comparison across our panel of more than 200 lenders.
Frequently asked questions
Will mortgage rates go down in 2027?
They may, if inflation falls back towards the Bank of England's 2% target, but forecasts have repeatedly changed. The safest approach is to secure a rate you can afford now and review it before completion.
How does the base rate affect my mortgage?
Tracker mortgages move directly with the base rate. Standard variable rates usually follow it. Fixed rates do not change until your deal ends, but new fixed rates reflect where markets expect the base rate to go.
When is the next Bank of England decision?
The next Monetary Policy Committee announcement is due on 17 December 2026.
Should I choose a tracker hoping rates fall?
A tracker can make sense if you want flexibility and can absorb further rises. Look for one with no early repayment charges so you can move to a fix later.