Half a million homeowners face a £369 mortgage hit as the Bank of England is set to raise rates to 4%

Governor Andrew Bailey, who faces warnings from Barclays' chief UK economist that holding rates risks unsettling expectations and undermining confidence in the Bank.

A data graphic showing mortgage rates from Nationwide, Barclays and Halifax, as Ofgem's price cap is projected to rise by roughly 25 per cent in January 2027.

Holders of tracker mortgages are facing an average monthly rise of £30.72 — £369 across the year — if the Bank's Monetary Policy Committee votes at Thursday's meeting to push the base rate from 3.75% to 4%. A further 470,000 borrowers on standard variable rates could also see costs climb if their lenders pass the full increase on. The rise would be the first since August 2023, driven by CPI inflation climbing to 3.5% in September, its highest point in 11 months.

Fuel prices have been pushed sharply higher by the Middle East conflict, pulling inflation further from the Bank's 2% target.

Oxford Economics economist Alexander Harvey calls a November hike a 'done deal', a view fully priced in by financial markets.

Inflation is forecast to climb further once Ofgem's energy price cap rises by around 25% in January 2027.

LBCBank of England set to hike interest rates to 4% to tackle rising inflation GB NewsHalf a million homeowners could see mortgage costs rise by £369 after Bank of England decision City A.M.City AM Shadow MPC urges Bank of England to hike interest rates Daily MailBank of England set to raise interest rates in fresh household squeeze The TelegraphMortgage rates hit three-year high ahead of crunch Bank of England vote The TelegraphHow the Bank of England is strangling the economy

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