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Mortgage Payments After the Bank Rate Rise: What 0.25% and 1% Cost per Month
Bank Rate hit 4% on 5 Nov 2026. On a £200,000, 25-year mortgage, +0.25% adds £29.32 a month and +1% adds £119.42. Tables and a free calculator.
Written by Ahad NoorPublished 5 min read
The Bank of England raised Bank Rate to 4% on 5 November 2026. If your mortgage is on a tracker or the lender's standard variable rate, that can lift your payment. If it is on a fixed rate, nothing changes until the fixed period ends, but the rate you can get next time will be shaped by where rates are then.
So there are two questions. What does a small rise cost on a variable mortgage today? And what would the payment be if you had to remortgage at a higher rate? On a £200,000 mortgage over 25 years, a quarter-point rise costs £29.32 a month. This guide shows both, using the same payment formula as the mortgage calculator.
Contents
Who pays more when Bank Rate rises?#
Tracker and standard-variable-rate mortgages can rise with Bank Rate; fixed-rate mortgages do not change until the fixed period ends.
- Tracker mortgages move with Bank Rate by a set margin, so a 0.25-point rise adds 0.25 points to your rate.
- Standard variable rate (SVR) mortgages are set by the lender, which may or may not follow Bank Rate.
- Fixed-rate mortgages keep their rate until the fix ends, even if Bank Rate moves.
The Bank of England says Bank Rate is 4% after the 5 November 2026 decision. It also lists the next decision date, 17 December 2026. Check your mortgage offer or annual statement to see which type you have and what your lender will do and when.
What does +0.25% cost on a £200,000 mortgage?#
A quarter-point rise (5% to 5.25%) adds about £29.32 a month to a £200,000, 25-year repayment mortgage.
Worked example: £200,000 over 25 years, 5% to 5.25%
Assumptions: Repayment mortgage, 300 monthly payments, interest charged monthly.
- At 5%: £1,169.18 a month.
- At 5.25%: £1,198.50 a month.
- Difference: £29.32 a month, or £351.78 a year.
On a tracker, each further quarter-point adds a similar amount.
Monthly payment on a repayment mortgage
Payment = P × r ÷ (1 − (1 + r)^−n)
P = amount borrowed; r = annual rate ÷ 12; n = months remaining
| Mortgage | 4% | 4.5% | 5% | 5.5% | 6% |
|---|---|---|---|---|---|
| £150,000 | £791.76 | £833.75 | £876.89 | £921.13 | £966.45 |
| £200,000 | £1,055.67 | £1,111.66 | £1,169.18 | £1,228.17 | £1,288.60 |
| £250,000 | £1,319.59 | £1,389.58 | £1,461.48 | £1,535.22 | £1,610.75 |
| £300,000 | £1,583.51 | £1,667.50 | £1,753.77 | £1,842.26 | £1,932.90 |
What if you have to remortgage at a higher rate?#
Fixed-rate borrowers face the bigger step later, when the deal ends and the new rate is higher than the old one. The table shows three illustrative moves on the same £200,000 balance and 25-year term. These are not forecasts of any lender's rates.
| Old rate | New rate | Old payment | New payment | Extra a month | Extra a year |
|---|---|---|---|---|---|
| 3.5% | 5.5% | £1,001.25 | £1,228.17 | £226.93 | £2,723.13 |
| 4.5% | 6% | £1,111.66 | £1,288.60 | £176.94 | £2,123.25 |
| 5% | 6% | £1,169.18 | £1,288.60 | £119.42 | £1,433.07 |
The longer your term, the smaller the monthly payment, but the more interest you pay overall. If a higher rate strains your budget, extending the term is one option, which the calculator lets you test.
What can you do?#
Find out which type of mortgage you have, then test your own balance, rate and remaining term at today’s rate and at one or two points higher.
Practical steps
- Find out whether you are on a tracker, SVR or fixed rate, and when any fix ends.
- Run your own balance, rate and remaining term through the mortgage payment calculator at today's rate and at one or two points higher.
- Put the extra monthly cost into your budget now, so a rise is not a surprise.
- If a fix ends within six months or so, start comparing deals early and ask whether you can secure a new rate in advance.
- Check whether your mortgage allows overpayments, and by how much, before you try to reduce the balance.
Mistake: Thinking a fixed-rate mortgage is affected today.
Instead: The payment stays the same until the fix ends. The risk is the rate you get at renewal.
Mistake: Using only the headline rate.
Instead: Fees and the length of the deal change the real cost, so compare total cost over the period you will hold it.
Mistake: Forgetting the term.
Instead: The same rate costs less a month over 30 years than 20, but costs more in total. Compare both.
Try the tool
Mortgage Calculator
Enter your balance, rate and remaining term to see the monthly payment at today's rate and at a higher one.
Open the Mortgage CalculatorRelated guides: How loan repayments work, what the rise means for personal loans, the loan repayment chart.
Frequently asked questions#
About £29.32 a month on a 25-year repayment mortgage, going from 5% to 5.25%. That is £351.78 a year.
No, not during the fixed period. The rate and monthly payment stay the same until the deal ends, when you move to a new deal or your lender's standard variable rate.
Bank Rate is 4%, after the Bank of England raised it from 3.75% on 5 November 2026. Its next decision is due on 17 December 2026.
It lowers the monthly payment but increases the total interest. For £200,000 at 5.5%, £1,135.58 a month over 30 years compares with £1,228.17 over 25 years.
No. They are capital and interest only. Arrangement fees, buildings insurance and other costs are separate.
Sources
- Bank of England – Bank Rate (checked 9 November 2026)
Ahad Noor
Ahad Noor builds and maintains Momentix, including its calculators, converters and the guides on this blog.
Each guide is checked against the matching Momentix tool, so the worked examples show the same figures the tool gives for the same inputs.
