The UK mortgage market has experienced another significant week, with the Bank of England increasing its base rate to 4%, average fixed mortgage rates reaching their highest levels in around three years, and several major lenders making changes to their mortgage products.
For homebuyers, homeowners approaching a remortgage and landlords, these developments highlight the importance of understanding how interest rate decisions affect mortgage pricing and why individual lenders may respond differently to wider economic conditions.
In this week’s mortgage market update, Oportfolio Mortgages examines the latest Bank of England announcement, recent changes to mortgage rates and what borrowers should consider as we move towards the end of 2026.
UK mortgage market at a glance – 9th of November 2026: The Bank of England has raised its base rate to 4%, while average two-year and five-year fixed mortgage rates reached 5.97% and 6.00% respectively at the start of November. The latest Lloyds House Price Index shows annual UK house prices falling by 1.2% in October. Despite higher average borrowing costs, lenders including Barclays, Gen H and Accord have announced reductions to selected mortgage products.
Bank of England Increases Base Rate to 4%
On the 5th of November 2026, the Bank of England announced that its Monetary Policy Committee (MPC) had voted to increase the UK base rate by 0.25 percentage points, from 3.75% to 4%.
The decision was supported by eight of the nine committee members, with one member favouring a larger increase to 4.25%.
The increase follows renewed concerns about inflation, particularly the impact of higher global energy prices on households and businesses.
UK consumer price inflation reached 3.5% in September, above the Bank of England’s 2% target. The Bank now expects inflation to rise to around 5% by the middle of 2027 before easing as energy price pressures subside.
The MPC stressed that future interest rate decisions will depend on economic conditions rather than following a predetermined path.
What Does the Base Rate Increase Mean for Mortgage Borrowers?
The impact will depend largely on the type of mortgage a borrower currently holds.
Tracker mortgages: Borrowers with mortgages linked directly to Bank Rate will generally see their interest rate increase by 0.25 percentage points, subject to their mortgage terms. This could result in higher monthly repayments.
Fixed-rate mortgages: Borrowers on an existing fixed-rate mortgage will not see their contracted interest rate change during their fixed period. However, those approaching the end of their deal may face different rates when refinancing.
Standard variable rate mortgages: Lenders may decide to increase their standard variable rates, although these changes are not necessarily identical to movements in Bank Rate.
First-time buyers and home movers: Mortgage affordability and available product rates remain important considerations. However, a Bank Rate increase does not automatically mean that every new fixed-rate mortgage will become more expensive.
For anyone approaching a remortgage, reviewing the available options before their current deal expires could help them prepare for potential changes in monthly repayments.
Average Fixed Mortgage Rates Reach Three-Year High
Recent Moneyfacts data shows that average fixed mortgage rates have risen considerably during 2026.
At the beginning of November, the average two-year fixed mortgage rate stood at 5.97%, compared with 5.59% at the start of September.
The average five-year fixed rate reached 6.00%, up from 5.63% over the same period.
Moneyfacts also reported that its average new mortgage rate reached approximately 5.89% at the beginning of November, its highest level in around three years.
These increases reflect the pressure that higher market funding costs and changing interest rate expectations have placed on lenders.
Why Have Fixed Mortgage Rates Increased?
Fixed mortgage rates are influenced by several factors, including swap rates, which reflect market expectations about future interest rates.
When swap rates increase, the cost of funding fixed-rate mortgages can also rise, prompting lenders to adjust their products.
This means mortgage rates can increase before the Bank of England announces a change to its base rate.
Equally, lenders may reduce selected fixed rates even when Bank Rate is rising, particularly if their funding costs improve or they want to remain competitive.
The key point for borrowers is that Bank Rate and fixed mortgage rates are connected, but they do not always move together or at the same time.
UK House Prices Fall by 1.2% Annually, According to Lloyds
The latest Lloyds House Price Index, published on the 6th of November, revealed that UK house prices fell by 0.6% in October, taking the average property price to £296,285.
On an annual basis, prices were 1.2% lower than in October 2025, representing the largest annual decline recorded by the index since October 2023.
Lloyds attributed the slowdown partly to higher borrowing costs, renewed inflationary pressures and the impact of rising household expenses on buyer confidence.
Interestingly, the figures contrast with Nationwide’s October House Price Index, which reported annual growth of 0.5% and broadly unchanged prices month on month. The two indices use different mortgage data and methodologies, which can produce different results.
What Does This Mean for Buyers and Sellers?
For prospective buyers, slower house price growth or modest price reductions may create opportunities to negotiate, particularly where properties have been on the market for some time.
However, higher mortgage rates can offset some of the potential savings from a lower purchase price, making it important to consider overall affordability.
For existing homeowners and sellers, the latest figures reinforce the importance of realistic property valuations and understanding how changing market conditions may affect their next move.
Although the latest data points towards a more subdued housing market, national averages do not necessarily reflect conditions in individual London neighbourhoods or property segments.
Barclays Reduces Selected Mortgage Rates
Despite the wider increase in mortgage pricing, Barclays announced reductions to a selection of residential purchase, remortgage and existing customer products at the beginning of November.
The reductions reached up to 0.30 percentage points across parts of its range.
Among the changes, Barclays reduced a two-year fixed residential purchase rate at 60% loan-to-value (LTV) from 5.15% to 4.95%, with a £899 product fee.
A five-year fixed product at the same LTV was also reduced from 5.13% to 4.99%, again with a £899 fee.
These changes demonstrate that individual lenders may still make competitive adjustments despite broader upward pressure on mortgage rates.
However, borrowers should consider the overall cost of a mortgage rather than focusing solely on the initial interest rate. Product fees, early repayment charges, mortgage terms and individual eligibility requirements can all affect which option is most suitable.
Low-Deposit Mortgage Rates Also See Reductions
There was also encouraging news for some borrowers with smaller deposits, as lenders announced reductions to selected high-LTV mortgage products.
Gen H Cuts 95% Mortgage Rates
On the 3rd of November, Generation Home (Gen H) announced rate reductions across its two-, three- and five-year fixed mortgage ranges.
The largest reduction was 0.25 percentage points on two-year fixed products at 95% LTV, with rates starting from 6.88% following the changes.
A 95% LTV mortgage allows an eligible buyer to purchase a property with a deposit equivalent to just 5% of its value.
For example, someone purchasing a £300,000 property with a 5% deposit would contribute £15,000 and require a mortgage of £285,000.
Although smaller deposits can help buyers enter the property market sooner, borrowing at a higher LTV often means paying a higher interest rate than someone with a larger deposit.
Accord Reduces Rates for First-Time Buyers and Landlords
Accord Mortgages also announced reductions to selected residential and buy-to-let mortgage products, effective from 6 November.
Its residential reductions included cuts of 0.18 percentage points on selected 95% LTV products.
One two-year fixed mortgage at 95% LTV was advertised at 6.15%, with a £495 product fee and £500 cashback for eligible first-time buyers.
Accord also reduced selected buy-to-let mortgage rates, including two- and five-year fixed products at 80% LTV.
These changes highlight the importance of comparing lenders individually. Even when average mortgage rates are increasing, some lenders may introduce more competitive options for particular borrowers or property types.
All product rates mentioned were announced during the reporting period and may have changed since publication. Availability is subject to lender criteria and individual circumstances.
What Does This Mean for Homebuyers and Homeowners?
The latest developments present different considerations depending on a borrower’s circumstances.
For First-Time Buyers
Buyers with smaller deposits may still have access to 95% LTV mortgage products, and recent lender reductions demonstrate that competition remains in parts of the low-deposit market.
However, affordability assessments, credit history, employment circumstances and the type of property being purchased can influence which products are available.
Understanding your borrowing potential before beginning a property search can help you set a realistic budget.
For Homeowners Looking to Remortgage
Homeowners approaching the end of a fixed-rate mortgage should review their options in good time.
Depending on the lender, borrowers may be able to secure a new mortgage deal several months before their existing arrangement expires.
This can provide time to assess available products, compare costs and consider whether remaining with the current lender or moving to a new provider is more appropriate.
Any decision should also take account of early repayment charges and the terms of the existing mortgage.
For Home Movers
For those looking to move home, mortgage affordability will remain an important consideration, particularly if they are borrowing more or moving to a higher-value property.
Some borrowers may be able to transfer an existing mortgage to a new property, subject to their lender’s approval and affordability requirements.
Others may benefit from reviewing the wider mortgage market.
For Buy-to-Let Landlords
Landlords should continue to monitor both mortgage pricing and lender affordability requirements.
Changes to interest rates can affect borrowing costs, rental stress tests and the profitability of a property investment.
Recent buy-to-let rate reductions from lenders such as Accord show that product availability and pricing can vary considerably across the market.
What Could Happen to Mortgage Rates Next?
The outlook for UK mortgage rates remains uncertain.
The Bank of England has made clear that its future decisions will depend on inflation, economic activity and the extent to which higher energy costs feed through into wider prices and wages.
Some lenders may continue adjusting mortgage rates as market funding costs and expectations change.
However, it would be premature to assume that mortgage rates will either rise consistently or begin falling immediately.
For borrowers, the most useful approach is to focus on their individual circumstances, affordability and longer-term plans rather than attempting to predict the exact direction of interest rates.
Oportfolio Mortgages’ Perspective
This week’s developments demonstrate why borrowers shouldn’t assume that a Bank of England rate increase means every fixed-rate mortgage will become more expensive.
Although average mortgage rates remain elevated, individual lenders are still adjusting their pricing, with some introducing reductions to selected products despite wider economic uncertainty.
For homeowners approaching a remortgage, first-time buyers and those planning to move, the focus should be on understanding the available options, assessing affordability and considering the overall cost of borrowing rather than trying to predict exactly where interest rates will go next.
At Oportfolio Mortgages, we’re continuing to monitor lender pricing and criteria to help our clients make informed decisions in a changing market.
Speak to Oportfolio Mortgages
The latest Bank of England decision and ongoing changes to lender pricing underline how quickly mortgage market conditions can develop.
Whether you’re buying your first home, moving house, approaching a remortgage or reviewing a buy-to-let mortgage, understanding the available options can help you make an informed decision.
At Oportfolio Mortgages, our advisers can assess your circumstances, compare suitable mortgage products and help you navigate lender criteria.
If you would like to discuss your mortgage options, contact the Oportfolio Mortgages team today.
FAQ: UK mortgage market update 9th of November 2026
Will my mortgage payments increase after the latest base rate rise?
It depends on your mortgage. Tracker mortgage borrowers will generally see an increase in their interest rate, while borrowers on existing fixed-rate deals will retain their agreed rate until the fixed period ends. Standard variable rates may also change at the lender's discretion.
Are mortgage rates going up in November 2026?
Average fixed mortgage rates were higher at the beginning of November than in September, according to Moneyfacts data. However, some individual lenders have reduced selected products, so not every available mortgage rate has increased.
Can I still get a mortgage with a 5% deposit?
Yes. Some UK lenders continue to offer 95% loan-to-value mortgages to eligible borrowers. Availability depends on factors including income, credit history, affordability and property type.
Should I remortgage now or wait for rates to fall?
There is no single answer. The most appropriate decision depends on when your current mortgage deal expires, the products available, your financial circumstances and your attitude towards future interest rate changes. A mortgage adviser can help you compare the options.
When is the next Bank of England interest rate decision?
The next scheduled Bank of England Monetary Policy Committee decision is on the 17th of December 2026.
