What just happened
On 5 November 2026 the Bank of England’s Monetary Policy Committee voted by a majority of eight to one to raise Bank Rate by 0.25 percentage points to 4%. One member wanted a bigger rise, to 4.25%. It is the first increase since August 2023. Rates had been on hold at 3.75% since December 2025, and many homeowners had been told all year that cuts were coming.
They are not. September’s inflation figure of 3.5% and higher energy costs linked to Middle East conflict pushed the Bank to act. Mortgage brokers quoted by Mortgage Solutions say fixed-rate lenders had already priced much of this in, with fixed rates now at a three-year high. The sharper effect is on variable-rate products, which move with the base rate.
Who feels it first
Tracker mortgages. Your rate follows Bank Rate. Your payment typically goes up at the next rate review, often within weeks.
Standard variable rate (SVR). Lenders set these themselves but they usually rise following the Bank’s lead, and they tend to be much higher than fixed deals.
Anyone coming off a fix. If your deal ends in the next few months, the new rate is likely to be higher than you hoped when you planned your budget.
What a quarter-point actually costs
An illustration, using our own calculation: on a £200,000 repayment mortgage over 25 years, moving from 4.5% to 4.75% adds roughly £29 a month. That is manageable on its own. But it is rarely on its own. It lands on top of energy bills, food prices and, for landlords, a tax rise on property income from April 2027. If your budget was already tight, £29 a month is not the problem. It is the next straw.
Do not wait for rates to come back down
The honest truth is that no one knows where rates go from here. Waiting is a bet, and the downside of losing it is severe. Arrears build quickly: missed payments add charges and interest, and they appear on your credit file. Your options narrow as the balance grows, and a forced or repossession-driven sale almost always achieves less than a planned one.
Meanwhile, selling the traditional way is slower than most people expect. Our earlier analysis found 214 days from listing to completion on average, and roughly a quarter of agreed sales collapsing before they complete. With the Bank of England having just made borrowing more expensive, buyers who need a mortgage become less certain, not more.
Your options, in order
1. Talk to your lender now
Lenders are expected to treat repossession as a last resort and to consider options such as temporary payment arrangements or a change of repayment type. The earlier you call, the more room you have. Do not wait until you have missed a payment.
2. Get free money advice
Free, independent debt and money guidance is available from services such as MoneyHelper, StepChange and Citizens Advice. They can help you set a realistic budget and deal with other creditors.
3. Check what your home is really worth
Ask for evidence, not just a number. Sold prices nearby matter more than asking prices.
4. Compare your selling routes honestly
Estate agent: typically months, and the sale depends on a buyer’s mortgage going through. Auction: weeks to list, with fees and the risk the reserve is not met. Cash buyer: typically 7 to 28 days, with no mortgage to fall through. The price from a cash buyer is lower than an optimistic open-market asking price. That is the trade-off, and we will not pretend otherwise. What you gain is speed, certainty and the ability to stop the arrears clock before it does lasting damage.
5. Decide by a date
Give yourself a deadline, for example 30 days, to decide whether you are going to hold on or sell. Indecision costs money.
What your agent will not tell you
A traditional estate agent is paid when you sell, usually as a percentage of the price, and many are paid only if the sale completes. That is not the same as being paid to keep you out of trouble. They have every reason to say conditions will improve in the spring. Ask them for a written estimate of how long a sale will take and what happens if it does not complete, then compare it with a cash offer that carries a fixed completion date.
How Property Offers helps
We buy houses for cash across the UK, with no estate agent fees and no chain. We will give you a clear, no-obligation offer, usually within 24 hours, and if you accept, we can complete in as little as 7 days or on a date that suits you. Every purchase is subject to searches and solicitor approval, and you decide. There is no pressure. If your mortgage payment has just become a worry, talk to us before it becomes a crisis.
Worried about your mortgage payment?
Tell us about your property and we will give you a no-obligation cash offer, usually within 24 hours. No fees, no chain, no pressure.