How much will my mortgage go up if interest rates rise?

The Bank of England announces its next Bank Rate decision on 5 November 2026. At the September meeting, three of the nine members of the Monetary Policy Committee voted to raise Bank Rate from 3.75% to 4%; the other six voted to hold it.

A 0.25-point rise adds about £29 a month to a £200,000 repayment mortgage over 25 years at an illustrative 4.98%. A tracker is linked to an external rate such as Bank Rate, so a rise passes through to it after your lender's notice. Fixed deals, which held 89.8% of outstanding mortgage balances in mid-2026, don't move until they end. That day can cost more than the rise itself.

Who pays more, and when

When a rise reaches your monthly payment depends on the mortgage:

• Tracker: it follows the rate it is linked to, usually Bank Rate, after your lender's notice.
• Standard variable rate (SVR): it changes whenever your lender changes it, and it is not directly linked to Bank Rate.
• Fixed, during the deal: the payment stays the same.
• Fixed, deal ending: you pay the new deal's rate, or the lender's reversion rate if you do nothing.

The Financial Conduct Authority (FCA) says a variable rate is typically set by your lender and can rise at any time, and that the reversion rate after a fix is often an SVR, typically higher than the fixed rate. Before a rate change alters your payment, your lender must give you reasonable notice in advance. The rule sets no number of days.

New fixed rates don't wait for Bank Rate either. The Bank of England's quoted two-year fixed rate at 75% loan-to-value was 3.97% in February 2026, 5.14% in April and 5.13% in September, while Bank Rate stayed at 3.75% all year. In its September minutes, the committee put the two-year rate around 95 basis points higher than prior to the conflict.

What a rise adds each month

The table starts from 4.98%, the Bank of England's quoted five-year fixed rate at 75% loan-to-value for September 2026, and adds each rise to it. The extra columns show what the same loan costs at a higher rate, whatever your starting rate.

The payment comes from the standard repayment formula, with r the yearly rate ÷ 12 and n the number of monthly payments:

Monthly payment = loan × r ÷ (1 − (1 + r)⁻ⁿ)

On interest-only, the sum is simpler: loan × rise ÷ 12. A 0.25-point rise costs £41.67 a month on £200,000, or £250 a year for every £100,000. That is more than the repayment figure, because on a repayment mortgage part of each payment pays off the loan, and the higher rate only applies to a balance that keeps falling.

The bigger jump: when your fix ends

In July 2026 the Bank of England estimated that a typical owner-occupier coming off a fix in the next two years will pay about £45 a month more. For the nearly 750,000 households paying less than 3% whose fixes end in 2026, the average rise is £170 a month, and a little over 5 million households will see higher repayments by the end of 2028. UK Finance expects around 1.8 million fixed rate mortgages to expire in 2026. Up to 971,105 five-year fixes opened in 2021 roll off this year, the FCA says.

What you will still owe when the fix ends

Take an example: £200,000 over 25 years, fixed at 2.5% for five years. The payment is £897.23 a month. After two years you still owe £188,186. After five you have paid off £30,680 and owe £169,320. On the same loan at 4.98%, you would owe £191,518 after two years and £177,104 after five.

Your new payment on that balance

Which balance does your next deal use? It uses the £169,320 you still owe, over the 20 years left.

In this example, the move from 2.5% to 4.98% adds £218 a month. A further 0.25-point rise on top adds roughly £23. If you do nothing, the loan moves to your lender's reversion rate, which varies by lender. At 5.36%, the average rate on all variable-rate balances in mid-2026 (an average across every non-fixed loan; individual lenders' SVRs differ), the payment would be £1,151.39.

What each option changes, in numbers

Each option below is priced on the same example. Whether any of them suits you is a question for you and your lender.

Overpay during the fix

Paying £100 a month extra for the five years leaves £162,936 to remortgage instead of £169,320. At 4.98% over 20 years, the new payment is then £1,073.51, or £42 a month less. How much you can overpay without a charge depends on your deal. An early repayment charge is normally a percentage of your remaining balance and usually falls as the deal nears its end, the FCA says; some lenders charge none.

Take a longer term

Spreading £169,320 over 25 years instead of 20 at 4.98% cuts the payment to £987.86 a month. The total interest rises from £98,416 to £127,037, or £28,621 more.

Use the Mortgage Charter

Under the Mortgage Charter, reaffirmed in March 2026, you can book a new rate up to six months ahead and switch to a new deal with your existing lender without a fresh affordability check. Borrowers who are up to date with payments can also switch to interest-only for six months or extend the term, with the option to go back within six months. It does not cover buy-to-let. Interest-only on £169,320 at 4.98% is £702.68 a month, and the balance does not fall while you pay it. In the second quarter of 2026, 381,364 mortgages were locked into a new deal early.

Work out your own number

Our UK mortgage calculator does both steps. Enter your loan, rate and term, then the length of your fixed period: it shows the balance left when the fix ends. Run it again with that balance, the years left and the rate you are quoted. To test an overpayment, add it under Extra payments and see how much sooner the mortgage ends. It works out interest the way UK lenders do, the yearly rate ÷ 12 each month, so a lender's statement can differ by a few pence.

Questions people ask

Does a Bank of England rate rise affect a fixed-rate mortgage?

Not while the fix lasts. It can affect the rate you are offered when the deal ends, and if you move to the lender's reversion rate, that rate can change at any time. Your lender must give you reasonable notice before your payment changes.

Is 3.75% a good mortgage rate?

3.75% is Bank Rate, which the Bank of England sets; mortgages are priced separately. In September 2026 the average rate actually paid on new mortgages was 4.63%, and 4.03% on all outstanding mortgages. The quoted two-year fix at 75% loan-to-value was 5.13% and the five-year fix 4.98%.

Will mortgage rates go up in 2026?

This is not a forecast. The Bank of England's remaining decisions are on 5 November and 17 December 2026, then 4 February 2027. In September, three of nine members voted for a rise to 4%. The quoted two-year fix went from 3.97% in February to 5.13% in September 2026 while Bank Rate stayed at 3.75%.

What will my mortgage balance be at the end of my fixed term?

It is your loan minus the part of each payment that went to the loan rather than interest. £200,000 over 25 years at 2.5% leaves £188,186 after a two-year fix and £169,320 after a five-year one; at 4.98% it leaves £191,518 and £177,104.

How much of my monthly payment is interest?

In the first month, the yearly rate ÷ 12 times the loan. On £200,000 at 4.98% over 25 years, £830 of the £1,166.85 payment is interest. At 2.5%, it is £416.67 of £897.23. The interest share falls every month as the balance does.