Millions of homeowners face higher mortgage bills as the Bank of England prepares its first rate rise since 2023
The Bank of England's Monetary Policy Committee is expected to raise the base rate from 3.75% to 4% on Thursday 5 November — the first increase since August 2023 — after UK inflation climbed to 3.5% in September, its highest in 11 months. The decision will push mortgage costs higher for hundreds of thousands already struggling with rising energy and food bills.
More than 2.3 million households are due to come off fixed-rate deals in 2027 and face sharply higher repayments.
Fuel costs driven up by the Iran conflict, alongside Ofgem's 3.6% energy cap rise in October and a further 22% forecast for January, are the main drivers of the inflation surge.
Thursday's move may prove the first in a series of four quarter-point increases across the next 12 months, with MPC member Megan Greene already arguing openly for tightening.
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