Bank Rate rises to 4%: what the November 2026 decision means for buy-to-let borrowing

The Bank of England raised Bank Rate, often called the base rate, from 3.75% to 4% on 5 November 2026, its first increase since August 2023. Trackers cost more now, fixed deals when they end, and buyers face higher rates and tougher rent tests; our guide to buy-to-let investment in the UK has the wider picture.

What changed

Bank Rate rose by 0.25 percentage points to 4% on 5 November 2026, the Bank of England's first increase since 3 August 2023.

Eight members voted for 4%; the ninth, Catherine L Mann, voted for a 0.5-point rise, to 4.25%.

Financial markets were pricing Bank Rate at around 4.9% at the end of 2027, according to the Bank's November Monetary Policy Report. That is market pricing, not a Bank forecast: the Report says its market curve reflects both expected rates and risk premia.

Who it affects

The rise reaches tracker and variable-rate borrowers first, fixed-rate borrowers when their deal ends, and anyone buying or remortgaging through product rates, plus rent tests on new borrowing.

Tracker rates follow Bank Rate, and the Bank says lenders usually raise what they charge on loans. Industry data from UK Finance puts each 0.25-point rise at £30.72 a month on the average tracker and £14.28 on the average standard variable rate, for regulated homeowner (residential) mortgages, not buy-to-let. It counted 450,000 variable-rate buy-to-let loans in the second quarter of 2026.

Fixed-rate payments stay the same until the deal ends. UK Finance counted 1.46 million fixed-rate buy-to-let mortgages in that quarter; separately, around 2.3 million residential (regulated homeowner) fixed deals expire across 2027.

New buy-to-let loans, including remortgages that add borrowing, meet a rent test set by the Prudential Regulation Authority (PRA); a like-for-like remortgage with no extra borrowing is outside it. The industry-standard minimum is rent covering 125% of the monthly interest at a stressed rate: the PRA expects lenders to allow for rates rising at least 2 percentage points over five years, with a 5.5% floor. A rate fixed for five years or more can be tested differently, and lenders set their own tests on top of these minimums, so a higher product rate can cut the loan on offer.

If you borrow through a limited company, the same PRA underwriting minimums apply as for an individual, but ask which rent test a lender applies to company applications. The mechanics are in our guide to how buy-to-let mortgages work; for your own loan, speak to a mortgage broker.

What it means in numbers

Mortgage rates were already rising before the decision, and on our example £135,000 interest-only loan each further 0.25 point adds £337.50 a year in interest.

Industry data from UK Finance, published on 12 November 2026, shows 8,170 buy-to-let mortgages in arrears of 2.5% or more of the balance in the third quarter of 2026, down 3% on the quarter and 22% on the year; buy-to-let possessions rose 10% on the quarter to 690, 23% below a year earlier.

UK Finance's 4.82% is the latest dated buy-to-let average we found and predates the autumn rises, so the example adds 0.25-point steps to it.

Example (illustrative, not a forecast or a real deal): the £180,000 flat from our buy-to-let guide, let at £1,050 a month, with a £135,000 interest-only loan at 75% loan-to-value.

At 4.82% the rent passes both tests. Each 0.25 point on a lender's stress rate raises the rent needed by about £35 a month or, at these rates, cuts the loan £1,050 supports by about £5,200; above a pay rate of about 5.47%, the 2-point test no longer supports £135,000 at 125% cover.

Property values and rental income can fall, and returns are not guaranteed. This is not mortgage advice.

What to do and by when

Check your deal's end date, test any purchase before you offer and pay any tax on time; the next decision is on 17 December 2026.

• Now: find your deal's end date and the rate you would move to.
• Tracker or variable rate: check your new monthly payment.
• Fixed deal ending in the coming months: compare deals with a mortgage broker before it ends.
• Before offering on a purchase: check the rent covers at least 125% of the interest at a stress rate of at least 5.5%, and at the pay rate plus 2 points; your lender may ask more.
• Self Assessment: pay any tax on time; HMRC late payment interest rises from 7.75% to 8.00% (Bank Rate plus 4%) on 24 November 2026.
• 17 December 2026: the next Bank Rate decision.

Quartico does not give mortgage advice. If you would like a broker who has worked on Quartico's developments before, we can introduce one, or you can use your own.

Frequently asked questions

Contains public sector information licensed under the Open Government Licence v3.0.

By Paul Wyatt · Reviewed by David Jacobs · Published 12 November 2026