Average Mortgage Rate Hits a Three-Year High of 5.89% as Bank Rate Rises to 4%: What Kingston Homeowners Remortgaging in November 2026 Need to Know

Last updated: November 10, 2026

A three-year high on mortgage rates arrived in the same week the Bank of England pushed borrowing costs to 4%. For anyone with a fixed deal expiring soon in Kingston upon Thames, Surbiton, New Malden or Norbiton, this is not a coincidence to wait out quietly.

Quick Answer

Mortgage rates November 2026 remortgage valuation decisions now sit against a backdrop of 5.89% average new mortgage rates and a 4% Bank Rate. Homeowners remortgaging this month should check their current deal's end date, get an independent valuation before relying on a lender's automated figure, and compare at least two-year and five-year fixed options against tracker products before committing.

Key Takeaways

• The Moneyfacts Average New Mortgage Rate hit 5.89%, a three-year high, as of 4 November 2026.
• Bank Rate rose from 3.75% to 4% on 5 November 2026, voted 8-1 by the Monetary Policy Committee.
• Lowest remortgage rates at up to 60% LTV start around 4.99% (two-year, three-year) and 5.05% (five-year).
• CPI inflation was 3.5% in September 2026, with Bank staff expecting it near 4.5% in early 2027.
• UK Finance estimates 2.3 million fixed-rate deals expire in 2027, meaning competition for remortgage business is intense.
• Lloyds House Price Index shows the UK average price fell 0.6% in October and 1.2% annually, raising down-valuation risk.
• An independent RICS valuation or Level 2/3 survey can protect Kingston homeowners from relying solely on a lender's desktop valuation.
• The next Bank of England rate decision is 16 December 2026.

Why Are Mortgage Rates So High Right Now in November 2026

Mortgage rates have climbed because lenders are repricing against rising swap rates and a Bank Rate that just moved to 4%. Inflation running hotter than expected is the main driver behind both decisions.

CPI inflation was 3.5% in September 2026, up from 3.1% in August, and Bank of England staff expect it to approach 4.5% in the first quarter of 2027. The Monetary Policy Committee raised Bank Rate from 3.75% to 4% on 5 November 2026 by an 8-1 vote, with Catherine Mann pushing for a larger half-point increase. Governor Andrew Bailey was careful to say this "should not be seen as the first in an inevitable long sequence of hikes," while chief economist Huw Pill suggested more tightening may still be needed. The next decision lands on 16 December 2026.

Rachel Springall of Moneyfactscompare noted that lenders "could well pivot away from making aggressive rises over the coming weeks," and fixed rates might ease slightly before year-end. Her caution matters: "most of the damage is unlikely to unwind entirely." Homeowners hoping rates snap back to 2024 levels should not plan around that outcome.

How Does the Bank Rate of 4% Relate to My Mortgage Rate

Bank Rate is the base cost of borrowing set by the Bank of England; it directly affects tracker and variable mortgages but only influences fixed rates indirectly through swap markets. A 4% Bank Rate does not automatically mean a 4% mortgage rate.

• Tracker and variable rate mortgages move almost immediately when Bank Rate changes, since they are priced as Bank Rate plus a fixed margin.
• Fixed-rate mortgages are priced using swap rates, which reflect where markets expect rates to go over the fix period, not just where Bank Rate sits today.
• This is why average new mortgage rates reached 5.89% even though Bank Rate is only 4%, lenders are pricing in inflation risk and future rate expectations, not just the current base rate.

Example: a tracker mortgage at "Bank Rate plus 0.75%" moved from 4.50% to 4.75% overnight on 5 November. A five-year fixed deal, by contrast, reflects swap rate movements that happened over recent weeks and months.

Should I Remortgage Now With Rates at 5.89%

Remortgaging now makes sense if your current fixed deal is ending within the next six months, since most lenders let you lock in a new rate ahead of time without penalty. Waiting purely in hope of a rate drop is a gamble, not a strategy.

Consider remortgaging now if:

• Your fixed deal ends between now and spring 2027.
• You're currently on your lender's standard variable rate (SVR), which is almost always higher than any fixed or tracker product on offer.
• You want certainty over payments while the Bank of England signals more tightening is possible.

Consider waiting if:

• Your current deal has more than six months left and carries a steep early repayment charge.
• Your loan-to-value (LTV) is borderline and a short delay could let you pay down more balance first.

Pull quote: "Most of the damage is unlikely to unwind entirely.", Rachel Springall, Moneyfactscompare, November 2026

What's the Difference Between Fixed and Variable Rate Mortgages

A fixed-rate mortgage locks your interest rate for a set period, usually two, three or five years, while a variable or tracker mortgage moves with Bank Rate or the lender's own standard rate. Each suits different risk appetites.

Feature	Fixed Rate	Tracker/Variable
Payment certainty	High	Low
Follows Bank Rate	No	Yes, usually directly
Early exit cost	Often an ERC	Sometimes lower or none
Best for	Budgeting stability	Those expecting rate cuts
Current examples (up to 60% LTV)	4.99% two-year, 5.05% five-year	Varies by lender margin

Choose a fixed rate if monthly budget stability matters most. Choose a tracker if you believe Bank Rate will fall meaningfully within your term and can absorb short-term payment swings.

How Much Will I Save by Remortgaging Right Now

Savings depend entirely on your current rate versus what's available today, and whether you're currently sitting on a lender's standard variable rate. The clearest savings come from avoiding SVR, not necessarily beating last year's fixed rate.

Current lowest remortgage rates (up to 60% LTV) as of early November 2026:

• 4.99% two-year fixed (HSBC, Nationwide BS)
• 4.99% three-year fixed (Nationwide BS)
• 5.05% five-year fixed (Lloyds Bank, Virgin Money)

For home movers: 4.90% two-year (Yorkshire BS) and 4.91% five-year (Santander). First-time buyers at 90% LTV can find 5.28% two-year (Virgin Money) or 5.19% five-year (first direct); at 95% LTV, 5.50% and 5.54% (Leeds BS).

If your current deal is ending and you'd otherwise fall onto an SVR, which typically runs well above these figures, the savings from remortgaging promptly can be substantial. Run the numbers using actual monthly payment comparisons rather than headline rates alone.

What Fees and Costs Come With Remortgaging

Remortgaging typically involves arrangement fees, valuation costs, legal fees and sometimes an early repayment charge. These costs can offset rate savings if not accounted for upfront.

• Arrangement/product fees: often £0 to £1,999, sometimes addable to the loan.
• Valuation fee: may be waived by the new lender, but their automated valuation may undervalue your property.
• Legal/conveyancing fees: many remortgage deals include free legal work, but check the small print.
• Early repayment charge (ERC): see below.
• Broker fees: if using an adviser, typically a flat fee or percentage.

Common mistake: focusing only on the headline rate and ignoring fees that can add hundreds or thousands of pounds to the real cost of switching.

What's an Early Repayment Charge and How Does It Affect Me

An early repayment charge (ERC) is a penalty for leaving your current mortgage deal before its fixed term ends, usually calculated as a percentage of the outstanding balance. It typically reduces the longer you stay in the deal.

• ERCs commonly range from 1% to 5% of the remaining balance, tapering down each year.
• Most lenders allow remortgaging up to three to six months before the current deal ends without triggering the ERC, because the new deal doesn't start until the old one finishes.
• Edge case: if you need to release equity or change lender mid-term for other reasons, calculate the ERC in cash terms before assuming a switch is worthwhile.

What Credit Score Do I Need to Remortgage in Kingston

There is no single fixed credit score threshold for remortgaging, but lenders look at your credit history, income stability and existing debt alongside the property's value. Kingston applicants are assessed the same way as anywhere else in the UK.

• A clean repayment history over the past 12 to 24 months matters more than a specific numerical score.
• Lenders will check for missed payments, high credit utilisation and recent credit applications.
• If your score has dipped, some lenders specialise in adverse-credit remortgages, though rates will be higher than the 4.99% to 5.89% range quoted above.

What Happens if My House Is Worth Less Than My Mortgage

If your mortgage balance is higher than your home's current value, you're in negative equity, and most mainstream lenders won't offer a new remortgage deal until that gap closes. This is a real risk given recent house price falls.

The Lloyds House Price Index (6 November 2026) put the UK average house price at £296,285, down 0.6% in October and 1.2% over the year. Even modest regional softness can tip a high-LTV mortgage into negative equity territory.

• If you're in negative equity, speak to your current lender about a product transfer, which doesn't require a new valuation of the same kind.
• Overpaying, where affordable, can help rebuild equity faster.
• Getting an independent valuation before assuming the worst is sensible, automated valuation models can be overly conservative in a falling market.

Do I Need a New Home Valuation to Remortgage

Most remortgages require some form of valuation, but many lenders now rely on automated or desktop valuations rather than a physical inspection. These can misjudge a property's true condition and value.

This matters directly for homeowners in Kingston, Surbiton, New Malden and Norbiton, where property types range from period conversions to newer flats, desktop algorithms don't see damp, extensions, or kerb appeal.

• Lender valuation: protects the lender's interest, not yours, and may be a quick desktop estimate.
• Independent RICS valuation: gives you an accurate, defensible figure, particularly useful if you suspect a lender's automated valuation has undervalued your home.
• Level 2 or Level 3 survey: useful when remortgaging to fund home improvements, since it flags structural issues that could affect future value or borrowing capacity.

Decision rule: if your remortgage is being used partly to raise funds for renovations, or if you believe your home's value has been underestimated, commission an independent RICS valuation before accepting a lender's figure at face value.

When Should You Definitely Not Remortgage

Avoid remortgaging if the early repayment charge outweighs any rate savings, or if you're close to the end of your current deal anyway. Timing errors are the most common costly mistake.

Do not remortgage now if:

• You have fewer than three months left on your current deal and can simply switch penalty-free when it ends.
• You're in confirmed negative equity with no lender offering acceptable terms.
• You plan to sell within 12 months, making any new product fees hard to justify.

What Are the Alternatives to Remortgaging

A product transfer with your existing lender, a further advance, or simply moving to the lender's standard variable rate temporarily are all alternatives worth weighing. Each avoids the full remortgage process but has trade-offs.

• Product transfer: faster, often no new valuation required, but may not offer the market's best rate.
• Further advance: borrowing more from your existing lender rather than switching entirely.
• Staying on SVR short-term: rarely advisable given SVRs usually sit well above the 4.99% to 5.89% range seen in current remortgage deals.

How Long Does the Remortgage Process Actually Take

A standard remortgage typically takes four to eight weeks from application to completion, though it can move faster with a product transfer. Starting early avoids rushing into a worse deal.

1. Review current deal end date and any ERC.
2. Get a valuation, lender's or independent RICS valuation.
3. Compare rates across two-year, three-year and five-year fixes, plus trackers.
4. Submit application and supporting documents.
5. Legal and valuation checks complete.
6. New deal completes, old deal ends.

Can I Remortgage if I Still Owe a Lot on My Current Mortgage

Yes, remortgaging with a large outstanding balance is normal and simply depends on your loan-to-value ratio and ability to meet affordability checks. Lenders assess the loan size relative to the property's current value, not the original purchase price.

• Higher LTV remortgages (above 75-80%) will see higher rates than the 4.99% to 5.05% examples quoted for up to 60% LTV deals.
• An accurate valuation becomes more important at higher LTVs, since a small valuation error can shift your rate tier significantly.

Conclusion and Next Steps

Mortgage rates November 2026 remortgage valuation decisions sit at a genuine inflection point: average rates at a three-year high of 5.89%, Bank Rate at 4%, and house prices softening nationally. None of that means homeowners should panic, but it does mean acting with accurate information rather than assumptions.

Next steps for Kingston, Surbiton, New Malden and Norbiton homeowners:

• Check your current deal's end date and any ERC today.
• Compare at least three lenders across fixed and tracker products.
• Commission an independent RICS valuation if you suspect your home's value, or a lender's automated figure, doesn't reflect reality.
• Factor in all fees, not just the headline rate, before switching.

This article is for general information and is not financial advice. Speak to a qualified mortgage adviser about your specific circumstances.

FAQ

Is 5.89% the rate I'll actually be offered?
No. 5.89% is the Moneyfacts Average New Mortgage Rate across all products as of 4 November 2026. Actual remortgage rates at up to 60% LTV start lower, around 4.99%.

Will rates fall before the end of 2026?
Moneyfactscompare's Rachel Springall suggested fixed rates could ease slightly, but cautioned that "most of the damage is unlikely to unwind entirely."

What's the next Bank of England decision date?
16 December 2026.

Does a higher Bank Rate always mean a higher mortgage rate?
Not directly for fixed deals. Tracker and variable mortgages follow Bank Rate closely; fixed rates follow swap market expectations instead.

Should I get my own valuation before remortgaging?
If you suspect your lender's automated valuation undervalues your home, or you need funds for improvements, an independent RICS valuation gives a more reliable figure.

What if my mortgage balance is more than my home's value?
This is negative equity. Most lenders won't offer a new remortgage until the gap closes; a product transfer with your existing lender may still be possible.

Sources

• Moneyfactscompare, "Mortgage rates roundup," 4 November 2026
• Bank of England, Monetary Policy Committee decision, 5 November 2026
• UK Finance, fixed-rate deal expiry estimates, 2026
• Lloyds Banking Group, Lloyds House Price Index, 6 November 2026

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