Interest rates rise to 4%: what it means for NI mortgage holders

The Bank of England raised interest rates from 3.75% to 4% on Thursday 5 November 2026. If you have a tracker mortgage, your payments will usually go up within weeks. If you’re on a fixed rate, nothing changes until your deal ends – but if that’s in the next six months, now is the time to look at your options.

This is the first rise since August 2023. The Bank’s Monetary Policy Committee voted 8–1 for the increase, with one member wanting a bigger rise to 4.25%. The main reason is inflation: it was 3.5% in September, well above the Bank’s 2% target, pushed up by higher energy prices linked to the conflict in the Middle East.

Does the rate rise affect my mortgage?

It depends on the type of mortgage you have.

• Tracker mortgage: your rate follows the Bank of England base rate, so it will normally go up by 0.25% from your next payment date or the one after. Check your mortgage offer for the exact terms.
• Standard variable rate (SVR): your lender sets this rate itself. Most lenders put their SVR up when the base rate rises, but they don’t have to. SVRs are usually much higher than fixed or tracker deals, so if you’re on one, it’s worth checking whether you could switch.
• Fixed rate: your payments stay exactly the same until your fixed period ends. The rise matters when you come to remortgage.
• Discount mortgage: these are set at a discount to the lender’s SVR, so they’ll rise if the SVR does.

How much more will I pay each month?

For most tracker borrowers, the 0.25% rise itself is fairly small. Here’s what it means on a repayment mortgage with 25 years left, if your rate goes from 3.75% to 4%:

Illustrative only. Repayment mortgage over 25 years, rounded to the nearest pound, assuming the full 0.25% rise is passed on. Fees and insurance are not included.

The bigger change: coming off an older fixed rate

For many homeowners in Northern Ireland, today’s 0.25% isn’t the real issue. The bigger jump comes when a fixed rate taken out a few years ago comes to an end.

Say you fixed at 1.8% and now owe £150,000 with 25 years left. Your payment would be around £621 a month. Moving to a new deal at 4.5% would take that to about £834 – an extra £212 a month, or over £2,500 a year. That’s far more than the effect of today’s rise.

Illustrative only. Actual rates depend on your circumstances, the lender and how much equity you have.

If you do nothing when your fixed rate ends, most lenders move you onto their standard variable rate, which is usually the most expensive option. That’s why it pays to plan ahead.

What should I do now?

1. Find out what type of mortgage you have. Your annual statement or online banking will show whether you’re on a fixed, tracker or variable rate.
2. Check when your deal ends. Many lenders let you secure a new deal up to six months before your current one finishes. If rates rise again before then, the rate you’ve secured is protected.
3. Don’t automatically take your lender’s offer. Staying with your current lender (a product transfer) is sometimes the best option and sometimes not. A broker can compare it with what’s available across the market.
4. Look at the full cost, not just the rate. Arrangement fees, early repayment charges and how long you fix for all make a difference to what you pay overall.
5. If money is tight, talk to your lender early. Lenders have to treat customers fairly and may be able to help before a payment is missed.

Will interest rates go up again?

Nobody can say for certain. The Bank has warned that inflation could climb further next year, which keeps the door open to another rise, but it has also said decisions will depend on how the economy and energy prices develop. The next decision is due on 17 December 2026.

Fixed rates on offer from lenders don’t always move in step with the base rate. They’re priced on what the markets expect rates to do in future, which is why some fixed deals had already gone up before today’s announcement.

Is now a good time to fix?

That depends on your situation. A fixed rate gives you certainty, which many people value when rates are rising. A tracker can work out cheaper if rates fall, but your payments can go up as well as down. The right choice depends on your budget, your plans for the property and how much risk you’re comfortable with – and that’s exactly what a mortgage adviser can help you work through.

Common questions

Talk to us about your mortgage

McDowell Financial Services is a Northern Ireland based mortgage broker with over 30 years’ experience. Whether your fixed rate is ending soon or you just want to know where you stand, we’ll look at your options across the market and explain them in plain English.

Book a free call with an adviser

Read more: Remortgage advice · Remortgaging before your fixed rate ends

Your home may be repossessed if you do not keep up repayments on your mortgage. McDowell Financial Services Ltd is authorised and regulated by the Financial Conduct Authority, FRN 800988. The information in this article is general guidance only and is not personal advice. Figures are illustrative and correct at the time of writing (5 November 2026).

This article is general information only and isn't personal advice. Mortgage and protection products depend on your circumstances, so please speak to one of our advisers before making a decision.