The UK mortgage market has entered November with borrowers facing higher mortgage costs, slowing house price growth and growing speculation about the Bank of England’s next interest rate decision.
Between the 26th of October and 2nd of November 2026, several important developments have emerged.
New figures from the Bank of England show that mortgage approvals for house purchases fell to 53,400 in September, while Nationwide reports that annual UK house price growth slowed to just 0.5% in October.
Meanwhile, average two-year and five-year fixed mortgage rates are hovering around 6%, and the government has published details of its new Your First Home scheme, designed to help eligible first-time buyers purchase new-build properties in England.
With the Bank of England due to announce its next interest rate decision on 5th November, the coming days could prove particularly important for homeowners approaching remortgage and buyers considering their next move.
Here’s what happened in the UK mortgage and property market this week, and what it could mean for your mortgage.
UK Mortgage Market: Key Takeaways for 2nd November 2026
- Average mortgage rates remain close to 6%: Moneyfacts figures published on the 30th of October put the average two-year fixed rate at 5.97% and the average five-year fixed rate at 6.00%.
- Mortgage approvals have fallen: The Bank of England recorded 53,400 mortgage approvals for house purchases in September, down from 54,800 in August.
- House price growth has slowed: Nationwide reports that annual UK house price growth fell to 0.5% in October, with prices unchanged month on month.
- A new first-time buyer scheme has been confirmed: The government’s Your First Home scheme is expected to open for applications in February 2027.
- The next Bank of England decision is approaching: Bank Rate currently stands at 3.75%, with the next announcement scheduled for Thursday 5th November.
- Remortgage activity is increasing: Approvals for remortgaging with a different lender rose from 34,000 in August to 42,600 in September.
What Are UK Mortgage Rates This Week?
UK mortgage rates remain elevated as lenders respond to changing wholesale funding costs, inflation expectations and competition.
According to Moneyfacts’ fixed-rate mortgage comparison data, updated on the 30th of October 2026, average fixed mortgage rates stood at:
| Mortgage type | Average rate |
|---|---|
| Two-year fixed mortgage | 5.97% |
| Five-year fixed mortgage | 6.00% |
These are market averages, not the rates every borrower will be offered.
For example, Moneyfacts also identified selected mortgage products below 5% for eligible borrowers with substantial deposits or equity. However, those products may have arrangement fees, specific eligibility requirements and restrictions on the maximum loan-to-value ratio.
Are Mortgage Rates Going Up or Down in November 2026?
The short-term outlook remains uncertain.
Mortgage lenders have been adjusting their pricing in response to wholesale funding costs and expectations about future interest rates.
Even before the Bank of England announces a change to Bank Rate, lenders may increase or reduce their fixed mortgage rates based on financial market expectations.
This is why borrowers shouldn’t assume that fixed mortgage rates will remain unchanged until the next official interest rate decision.
It’s also important to remember that the lowest advertised mortgage rate isn’t necessarily the cheapest mortgage overall.
Arrangement fees, incentives, the mortgage term and early repayment charges can all affect the total cost.
Oportfolio’s view: Borrowers should compare mortgage products based on their overall suitability and cost, rather than making decisions solely on whether the advertised rate begins with a four or a five.
If you’re reviewing your options, our mortgage repayment calculator can help you understand how different interest rates could affect your monthly payments.
Bank of England Interest Rate Decision: Will Rates Rise on 5th November?
One of the biggest events facing mortgage borrowers this week is the Bank of England’s next Monetary Policy Committee meeting.
The Bank of England currently holds Bank Rate at 3.75%, following its September decision.
The next announcement is scheduled for Thursday the 5th of November 2026.
Financial markets have increasingly considered the possibility of a rate increase, with inflation remaining above the Bank’s 2% target and energy prices contributing to uncertainty.
However, no decision has been announced as of the 2nd of November.
Why Might the Bank of England Increase Interest Rates?
The Bank of England uses interest rates to help control inflation.
When inflation remains too high, raising interest rates can reduce demand across the economy by making borrowing more expensive and encouraging saving.
However, higher rates can also put pressure on households and businesses.
Policymakers must therefore balance inflation risks against weaker economic activity and household affordability.
What Would a Bank Rate Increase Mean for My Mortgage?
The impact depends on your mortgage product.
Fixed-rate mortgage: Your contractual interest rate and monthly repayments would normally remain unchanged during the fixed period. However, the rates available when you next remortgage could be different.
Tracker mortgage: If your tracker follows Bank Rate, a rise would generally increase your mortgage interest rate in accordance with the product terms.
Standard variable rate mortgage: Your lender may change its SVR following a Bank Rate decision, although the amount and timing are at the lender’s discretion.
For borrowers whose fixed-rate deal is approaching its end, the more important question may be what rates are available when they need to arrange their next mortgage.
We’ve explored the wider outlook in our guide to whether UK interest rates could rise again.
UK Mortgage Approvals Fall to 53,400: Is Buyer Demand Weakening?
Fresh Bank of England figures suggest that higher borrowing costs are continuing to affect mortgage demand.
According to the Bank’s Money and Credit report published on the 29th of October 2026, mortgage approvals for house purchases fell to 53,400 in September.
This compares with 54,800 in August and an average of approximately 58,800 over the previous six months.
Net mortgage borrowing also declined to £3.9 billion, compared with £4.2 billion in August.
What Does a Fall in Mortgage Approvals Mean?
Mortgage approvals provide an indication of future property purchase activity.
When approvals fall, it can suggest that fewer buyers are progressing with mortgage applications or that affordability conditions are making it more difficult to proceed.
However, lower approvals don’t necessarily mean every buyer is being rejected.
They can also reflect people delaying their property search, adjusting their budgets or deciding to wait until borrowing costs become more manageable.
For buyers who remain financially prepared, a quieter market could potentially create opportunities to negotiate on certain properties.
Nevertheless, this will depend heavily on the local market, property type and seller’s circumstances.
Remortgage Approvals Rise Sharply
Interestingly, the same Bank of England report showed that remortgage approvals with a different lender increased from 34,000 in August to 42,600 in September.
That’s an increase of approximately 25%.
This suggests that more existing homeowners have been actively switching lenders, even as purchase approvals have weakened.
The figures exclude product transfers where borrowers remain with their current lender.
For homeowners approaching the end of a fixed-rate deal, it’s worth reviewing both remortgaging and product transfer options.
Read our guide to product transfer mortgages to understand the differences.
UK House Price Growth Slows to 0.5% in October 2026
Another important development this week came from Nationwide’s latest House Price Index.
According to Nationwide’s October 2026 figures, annual UK house price growth slowed to just 0.5%, compared with 0.8% in September.
House prices were unchanged on a monthly basis.
The average UK property price stood at approximately £273,566 in October.
Are UK House Prices Falling?
Not necessarily.
The latest figures show that house prices are still slightly higher than a year earlier, but the pace of annual growth has slowed significantly.
A national average also conceals substantial differences between local property markets.
Prices in London, for example, can behave differently from those in other parts of the country, and demand may vary considerably between flats, family houses and higher-value properties.
Borrowers should therefore avoid assuming that a national slowdown means every property will become cheaper.
Is Now a Good Time to Buy a House?
There isn’t a single answer that applies to everyone.
A slower property market may give some buyers more negotiating room, particularly where a property has been listed for an extended period.
However, mortgage affordability remains a significant consideration.
A lower purchase price doesn’t automatically make a property affordable if the borrowing costs are higher than expected.
Before making an offer, buyers should understand their likely mortgage repayments, deposit requirements and overall borrowing potential.
Our guide to how mortgage affordability is calculated explains the factors lenders consider.
Government Confirms New Your First Home Scheme for First-Time Buyers
First-time buyers received potentially significant news following the government’s Autumn Budget announcements.
On 28th October 2026, the government published further guidance on Your First Home, a new scheme intended to help eligible first-time buyers purchase new-build properties in England.
According to the government’s official guidance, applications are expected to open in February 2027.
How Will the Your First Home Scheme Work?
The scheme is designed to help eligible buyers purchase a qualifying new-build home using a smaller deposit and a government-backed equity loan.
The government has indicated that the scheme is expected to support deposits as low as 2.5%, alongside equity loans of up to 20% of the property’s value, subject to the final rules and eligibility requirements.
The equity loan is expected to have an initial interest-free period.
However, buyers should carefully consider the longer-term costs and obligations associated with an equity loan, including how repayments may work when the property is sold or the loan is redeemed.
Eligibility restrictions and property price limits will also apply.
Should First-Time Buyers Wait Until February 2027?
Not automatically.
Although the scheme may help some buyers overcome the deposit barrier, it won’t necessarily be suitable for everyone.
For example, the scheme is intended for eligible new-build purchases in England, so buyers looking at existing properties may need to consider other mortgage options.
Some buyers may also qualify for a conventional mortgage with a relatively small deposit.
Waiting for a new scheme could mean delaying a purchase without knowing whether the eventual eligibility criteria will suit your circumstances.
Oportfolio’s view: First-time buyers should compare the total cost and suitability of the proposed equity loan arrangement with conventional mortgage options before deciding whether to wait.
If you’re planning to buy your first property, our first-time buyer deposit guide is a useful starting point.
What Do This Week’s Mortgage Market Changes Mean for Borrowers?
The latest developments affect borrowers differently depending on whether they’re buying their first home, moving property or approaching remortgage.
First-Time Buyers
Higher mortgage rates can affect affordability, but slower house price growth may provide opportunities in certain markets.
The new Your First Home scheme is also worth monitoring, although eligibility and overall costs will be important.
First-time buyers should establish their borrowing potential before committing to a property search.
Homeowners Approaching Remortgage
With average fixed rates near 6%, borrowers coming off older, cheaper mortgage products could face higher monthly repayments.
Reviewing options early may provide more time to compare products and understand the financial implications.
It’s also worth checking whether your existing lender offers a suitable product transfer.
Home Movers
A quieter housing market may create opportunities to negotiate, but affordability should remain central to the decision.
If you’re moving to a larger property, changes in mortgage rates can significantly affect the monthly cost of additional borrowing.
Self-Employed and Higher-Income Borrowers
Applicants with complex income arrangements may benefit from a more detailed assessment of lender criteria.
For example, company directors, contractors and borrowers receiving substantial bonuses may find that different lenders calculate affordability differently.
This can be particularly relevant for larger mortgages in London, where borrowing requirements and income structures may be more complex.
Oportfolio Insight: Why Mortgage Affordability Matters More Than Market Predictions
The combination of higher mortgage rates, slowing house price growth and uncertainty over Bank Rate makes it tempting to delay financial decisions until the outlook becomes clearer.
However, trying to predict the perfect time to buy or remortgage can be difficult.
A borrower might wait for mortgage rates to fall, only to find that their preferred property has sold, their circumstances have changed or the available mortgage products are no longer suitable.
Equally, rushing into a mortgage because of concerns about future rate increases can create unnecessary financial pressure.
The more useful approach is to understand what is affordable today, what might happen if circumstances change and which mortgage options are appropriate.
At Oportfolio Mortgages, we help borrowers understand how lender criteria, income, deposit levels and changing mortgage products can affect their options.
For many borrowers, making a well-informed decision based on their own financial circumstances is more valuable than trying to predict exactly where mortgage rates will be in six months.
UK Mortgage Market Outlook: What Should Borrowers Watch Next?
There are several important developments to monitor over the coming weeks.
Bank of England interest rate decision – 5th of November
The next Bank Rate announcement could influence financial market expectations and mortgage pricing, although fixed rates may not move in the same direction or by the same amount.
Mortgage lender pricing
Borrowers should watch for changes to fixed-rate products, arrangement fees and lender eligibility criteria.
UK inflation and economic data
Further inflation and economic releases will help shape expectations about the direction of interest rates.
Property market activity
Upcoming house price and mortgage approval data will provide more evidence of whether buyer demand is stabilising or weakening.
Your First Home scheme details
Further government guidance will help establish how the scheme will operate and which first-time buyers could benefit.
Speak to Oportfolio Mortgages About Your Options
With mortgage rates remaining elevated, house price growth slowing and another Bank of England decision approaching, understanding your mortgage options is particularly important.
Whether you’re a first-time buyer, moving home, remortgaging or looking for a larger mortgage, professional advice can help you navigate the available products and lender criteria.
At Oportfolio Mortgages, our advisers work with clients across London and the UK, including borrowers with more complex income arrangements and higher-value mortgage requirements.
We can help you understand your borrowing potential, compare suitable mortgage products and plan your next steps.
Want to discuss your mortgage options?
Contact Oportfolio Mortgages or call 020 8877 1169 to speak with our team.
Frequently Asked Questions About UK Mortgages in November 2026
Will Mortgage Rates Go Down in November 2026?
Mortgage rates could rise or fall depending on wholesale funding costs, inflation expectations, lender competition and the Bank of England's decisions. There is no guarantee that fixed mortgage rates will fall during November.
Will the Bank of England Raise Interest Rates on the 5th of November?
The Bank of England's next decision is scheduled for 5th November 2026. As of 2nd November, Bank Rate remains at 3.75%. Although a rise is being discussed by financial markets, the decision has not yet been announced.
Are UK House Prices Falling in 2026?
Nationwide's October figures show that UK house prices were unchanged month on month and 0.5% higher than a year earlier. However, property prices and buyer demand vary considerably by region and property type.
Is It Harder to Get a Mortgage in November 2026?
Mortgage affordability remains challenging for some borrowers because of higher interest rates and household costs. However, lenders continue to offer mortgages, and eligibility depends on individual circumstances rather than market conditions alone.
Should I Remortgage Before the Bank of England's Next Decision?
It may be worth reviewing your options before the announcement, particularly if your existing deal is approaching its end. However, whether to proceed depends on your current rate, available products, fees, lender criteria and the timing of your existing mortgage.
What Is the New Your First Home Scheme?
Your First Home is a government-backed scheme intended to help eligible first-time buyers purchase qualifying new-build properties in England using a smaller deposit and an equity loan. Applications are expected to open in February 2027, subject to the scheme's published requirements.
