The Bank of England has raised Bank Rate for the first time since 2023. At its meeting ending on 4 November 2026, the Monetary Policy Committee voted by 8–1 to increase the rate by 0.25 percentage points to 4%, with one member preferring a larger rise to 4.25%. For property borrowers, the decision reverses the direction of travel described in our September update, when the rate was held at 3.75%.
In short: Bank Rate is now 4%. CPI inflation rose to 3.5% in September and the Bank expects it to reach around 5% by the middle of 2027. The Committee says policy is not on a pre-set path. Quoted mortgage rates had already moved higher before the decision.
Why did the Bank of England raise rates?
The Bank’s November 2026 Monetary Policy Report points to energy. The conflict in the Middle East is in its ninth month and global energy prices have continued to rise from an already elevated level. The Committee notes only limited evidence so far of those costs spreading into wider prices and wages, but judges that the inflationary pressure building in the pipeline now warrants a rate increase. Activity data have also been stronger than expected.
- Decision: Bank Rate up 0.25 percentage points to 4%.
- Vote: 8–1, with the minority vote for 4.25%.
- Inflation: CPI at 3.5% in September, projected to peak at around 5% in mid-2027.
- Guidance: no pre-set path; decisions will be taken meeting by meeting.
What does the report say about mortgages and housing?
The Monetary Policy Report records that quoted mortgage rates at 75% and 90% loan-to-value rose by around 60 basis points ahead of the decision, as markets priced in tighter policy. Mortgage approvals fell by 8% in the three months to September, and house prices fell by 0.8% in the three months to August. The next scheduled decision is on 17 December 2026.
Why does this matter for short-term property finance?
Exit routes are rate-sensitive
Bridging loans are usually repaid by a sale or by refinancing onto a longer-term mortgage. Where the exit is a refinance, the terms available at the end of the bridge depend on the mortgage market at that time. Higher term rates can affect how much a borrower is able to refinance, because many lenders test affordability and rental cover against the prevailing rate.
Bridging pricing is set lender by lender
Short-term lenders set their own pricing, and it is not mechanically linked to Bank Rate. The cost of funding, the property, the loan-to-value and the strength of the exit all play a part, so the effect of a single rate decision varies from case to case.
Timing and certainty
When the outlook for rates is uncertain, the value of a clear timetable increases. Borrowers planning an auction purchase, a chain break or a refurbishment tend to focus on how quickly a lender can give a decision and on a realistic, documented exit plan.
Frequently asked questions
What is the Bank of England base rate now?
Bank Rate is 4% following the decision announced on 5 November 2026.
Why did the Bank of England raise rates in November 2026?
The Monetary Policy Committee cited rising global energy prices linked to the conflict in the Middle East, inflation of 3.5% in September with a projected peak of around 5% in mid-2027, and stronger-than-expected activity.
Will rates rise again?
The Bank says policy is not on a pre-set path and that it will assess the evidence at each meeting. No further change is confirmed.
Does a Bank Rate rise change the cost of a bridging loan?
Not automatically. Bridging lenders set their own pricing, which reflects funding costs and the risk of each case. A rate rise can, however, affect the mortgage market that many bridging exits rely on.
Important information
Ponte Finance PLC is a private lender, not a bank, and is not authorised or regulated by the Financial Conduct Authority. Lending is for business purposes only and is not available to consumers or for property occupied, or to be occupied, by the borrower or a family member as a home. All loans are secured against property, and the property may be repossessed if repayments are not maintained. This article is for general information only and reflects publicly available data at the date of publication. It does not constitute an offer of finance, a forecast, or financial, investment, tax or legal advice. Ponte Finance PLC is registered in England and Wales, company number 15859004, registered office 225 Clapham Road, London SW9 9BE.