Eight members of the Monetary Policy Committee voted to raise Bank Rate to 4%, while one member wanted an even larger increase. The decision changes the arithmetic for anyone buying, selling or remortgaging in Kingston upon Thames.
On Thursday 5 November 2026, the Bank's Monetary Policy Committee raised Bank Rate by 0.25 percentage points, taking it from 3.75% to 4%. It is the first increase since August 2023. For homeowners and buyers in Kingston and Surbiton, this is not an abstract national headline. It touches mortgage offers already in the pipeline, remortgage decisions due in the coming months, and how sellers should think about pricing a property this autumn.
Key Takeaways
- Bank Rate rose from 3.75% to 4% on 5 November 2026, the first rise since August 2023, decided by an 8-1 MPC vote.
- CPI inflation reached 3.5% in September 2026, well above the Bank's 2% target, with the MPC forecasting it could hit 5% by mid-2027.
- Average two-year fixed mortgage rates have climbed to 5.97% and five-year fixed rates to 6.00%, according to Moneyfacts.
- Tracker and standard variable rate borrowers feel the effect of the rate rise immediately; fixed-rate borrowers are affected only when their current deal ends.
- Kingston buyers, sellers and remortgagers should speak to an independent mortgage broker and consider an independent RICS Home Survey or valuation before making decisions.
Why the Bank of England Raised Rates to 4%
The vote was not unanimous but it was decisive. Eight MPC members backed the 0.25-point rise to 4%. One member pushed for a larger 0.5-point increase, to 4.25%. This follows a run-up in dissent: at the September 2026 meeting, three members had already voted for a rise, signalling that this outcome had been building for weeks.
The driver is inflation. CPI inflation hit 3.5% in the 12 months to September 2026, up from 3.1% in August and 2.9% in July. That is well above the Bank's 2% target, and the trend is upward, not downward. The MPC now forecasts inflation could reach 5% by mid-2027, largely because of energy prices linked to the Middle East conflict.
Bank Rate had sat at 3.75% since December 2025, when it was cut from 4%. The rise back to 4% effectively reverses that cut within less than a year, a sign of how quickly the inflation picture shifted.
Governor Andrew Bailey was careful with his language. He said: "Today's increase shouldn't be seen as the first in an inevitable long sequence of hikes." At the same time, he indicated that unless the Middle East conflict is resolved, this rise is unlikely to be the last one.
What Happens Next After the Bank of England Rate Rise to 4%
Three dates matter for anyone tracking this. Inflation figures are due on 18 November 2026. The next MPC decision follows on 17 December 2026. The first decision of 2027 is scheduled for 4 February 2027.
Economists are not waiting for those dates to make their calls. Sanjay Raja of Deutsche Bank expects a further rise to 4.25%, either in December or February. Alexander Harvey of Oxford Economics forecasts the same 4.25% level, but pencils it in for February 2027. Neither is certain, and both are forecasts rather than facts, but they point the same direction: upward, at least in the near term.
How the Mortgage Market Has Already Reacted
Moneyfacts figures from the start of November 2026 show the average new mortgage rate at 5.89%, the highest since November 2023. The average two-year fixed rate is now 5.97%, up from 5.59% at the start of September. The average five-year fixed rate has risen to 6.00%, up from 5.63% over the same period. The average two-year tracker stood at 4.68% before this week's rise.
Nick Mendes of broker John Charcol pointed out that the rise had been expected for weeks and was largely already reflected in fixed-rate pricing. David Hollingworth of L&C Mortgages said September's inflation figure had, in his words, "cemented expectations" of a rise. In practice, this means much of the bad news was already baked into fixed deals before Thursday's announcement.
Moneyfacts estimates that a 0.25-point rise adds about £37 a month to a £250,000 tracker mortgage on a 25-year term. Borrowers on tracker and standard variable rates feel this change almost immediately. Fixed-rate borrowers are shielded until their current deal ends, at which point they move onto whatever rates are available then. UK Finance data shows about 2.3 million fixed-rate mortgages are due to expire by the end of 2027, so a significant number of households will meet the new rate environment over the next year or so.
| Rate type | Level (start of November 2026) | Change since early September 2026 |
|---|---|---|
| Bank Rate | 4% | Up from 3.75% |
| Average new mortgage rate | 5.89% | Highest since November 2023 |
| Average two-year fixed | 5.97% | Up from 5.59% |
| Average five-year fixed | 6.00% | Up from 5.63% |
| Average two-year tracker | 4.68% (before this rise) | Not published |
What the Rate Rise Means for Kingston Buyers
Anyone with a mortgage offer in progress should check the small print carefully. Some offers are time-limited and rate-specific; if your purchase stalls, you may need a new offer at a higher rate. Speak to an independent mortgage broker promptly rather than assuming your existing offer will still apply at completion.
Affordability stress-testing by lenders tends to tighten when rates rise, which can reduce how much you are able to borrow even if your income hasn't changed. This is worth factoring into any offer you are preparing to make on a Kingston or Surbiton property.
An independent RICS Home Survey remains valuable in this climate, arguably more so. If a survey uncovers defects, damp, structural movement or other issues, that evidence can support a renegotiation of the price, which matters more than ever when monthly costs are higher. A chartered surveyor's report gives you a factual basis for that conversation, rather than a guess.
What Sellers in Kingston and Surbiton Should Consider
Higher borrowing costs tend to squeeze buyers' budgets, even where house prices themselves have not moved. A buyer who could comfortably afford a certain mortgage a few months ago may now be assessed differently by their lender. Sellers who price realistically, with this tightening in mind, are more likely to secure a smooth sale rather than a string of renegotiations after survey.
It is sensible to expect more scrutiny from buyers on condition and value, particularly where a RICS Home Survey flags issues. Being upfront about known defects, or commissioning your own pre-marketing survey, can reduce the risk of late-stage price chipping.
Remortgaging After the Bank of England Rate Rise to 4%
Homeowners coming to the end of a fixed deal face a different market from the one they joined. With average two-year and five-year fixed rates both now above 5.9%, the gap between an old deal and a new one could be noticeable. UK Finance's figure of roughly 2.3 million fixed-rate mortgages expiring by the end of 2027 shows how many households across the UK, including in Kingston, will go through this transition.
Loan-to-value banding matters here. Lenders typically offer better rates to borrowers with more equity, so an accurate up-to-date valuation can affect which rate tier you fall into. Lender valuations are sometimes conservative or automated. Where a homeowner believes their property is undervalued, or where a lender's desktop valuation seems out of step with the local market, an independent RICS valuation can provide a more detailed, evidence-based figure to support a remortgage application or a dispute with a lender.
Frequently Asked Questions
Is 4% a high Bank Rate by recent standards?
It is below the 5.25% level reached in August 2023, but higher than the 3.75% rate that had applied since December 2025. Whether it feels high depends on what rate your existing mortgage was arranged against.
Will rates keep rising after this rate rise in Kingston and nationally?
Governor Andrew Bailey said this increase should not be seen as the start of an inevitable long run of hikes, but also suggested further rises are possible unless the Middle East conflict affecting energy prices is resolved. Economists at Deutsche Bank and Oxford Economics both forecast a possible move to 4.25% in the coming months. These are forecasts, not certainties.
Should I fix my mortgage now or wait?
This depends on your personal circumstances, how long is left on any current deal, and your attitude to risk. Speak to an independent mortgage broker before deciding, since they can review the options against your specific lender and timeline.
Does a RICS Home Survey still make sense if mortgage rates are higher?
Yes. A survey assesses the physical condition of the property, which is separate from the cost of borrowing. If anything, higher monthly costs make it more important to know exactly what you are buying and to have evidence for any renegotiation.
When is the next Bank of England decision?
The MPC's next meeting is on 17 December 2026, with the first decision of 2027 due on 4 February 2027. Inflation figures are published on 18 November 2026, ahead of the December meeting.
Conclusion
The rise to 4% reflects a genuine change in borrowing conditions, driven by inflation running well above target and an uncertain energy outlook. For buyers, that means checking mortgage offers and affordability assumptions before committing. For sellers, it means pricing with a realistic view of buyers' tightened budgets. For remortgagers, it means paying close attention to loan-to-value bands and valuation accuracy as a fixed deal comes to an end.
Whatever stage of the property process you are at, speak to an independent mortgage broker about your specific figures, and consider whether an independent RICS survey or valuation would give you a firmer footing for your next decision. Kingston Surveyors provides RICS Home Surveys and valuations across Kingston upon Thames and the surrounding areas, including Surbiton, for buyers, sellers and homeowners navigating this changed rate environment.
