Base rate rise: why trackers can still offer value

The base rate has gone up to 4%. Should tracker borrowers be worried? A rise can increase your repayments, but it does not automatically mean your tracker is poor value. The answer depends on your mortgage, the fixed alternatives and how much payment uncertainty you can afford.

On 5 November 2026, the Bank of England announced a 0.25 percentage-point rise in Bank Rate, from 3.75% to 4%. Its statement reported September inflation of 3.5%. Bank Rate had previously been cut to 3.75% in December 2025. The next decision is due on 17 December 2026; this is a scheduled decision, not a prediction of another rise.

If your mortgage tracks Bank Rate, its rate will generally rise in line with that benchmark, subject to any floor, cap or other terms in your agreement. Your lender will confirm when the change affects your payment. That is understandably unsettling, but it is worth looking at the whole comparison before deciding to fix.

Why a tracker can still be good value

The starting gap between your tracker and a comparable fixed rate matters. There is no universal 1% discount: the gap varies by lender, loan to value, fees, product and your circumstances.

If, for illustration, your tracker started 1 percentage point below the fixed rate you could have taken, a 0.25-point rise would leave it 0.75 points below that fixed rate. You would be paying more than before, but less than the illustrative fix. Whether that holds for your mortgage needs a like-for-like comparison, including fees and any early repayment charges.

An illustrative £250,000 repayment mortgage

The following compares the same £250,000 balance over 25 years, with no fees added and monthly repayments:

In this example, the rise adds about £35 a month, but the tracker remains about £107 a month below the fix. Three further rises of 0.25 percentage points would bring the example tracker rate to 5%, matching the example fixed rate.

That is a rate comparison, not a total-cost break-even forecast. Your balance will change over time, and fees, payment dates and earlier savings affect the overall cost. These rates are illustrative only, not current products or quotations. A tracker can become more expensive than a fix if rates rise further.

Try different rates and terms in our mortgage payment calculator to see how increases could affect your budget.

Reserve a fixed-rate option while staying on your tracker

If you are concerned about further rises, it may be possible to reserve a fixed deal in advance while you remain on your tracker. This can give you an option to review, rather than requiring you to switch immediately.

These are possible windows, not a promise that every tracker borrower can reserve a deal for that long. Reservation periods, application requirements, start dates, cancellation terms and the ability to move to a better deal vary by lender and product. We will check the actual terms for you.

If rates rise and you still qualify, you may choose to proceed with the reserved fix before it expires. If rates fall or your circumstances change, whether you can cancel, amend or replace it depends on those terms. A reservation does not cap your tracker payments: the fixed rate only provides payment certainty once the switch takes effect. Lender checks and completion conditions still apply.

For a separate advance rate-reservation service, depending on your requirements, a fee of £125 may apply for securing an option for up to six months. We will explain the service and agree any applicable fee in writing before you commit. No broker fees for first-time buyers remains our promise, and our advertised product switches with your existing lender remain fee-free with cashback; this is not an additional charge for those services. See our fee guide.

Flexibility is usually greater where your tracker has no early repayment charge. If charges apply, they could outweigh the benefit of switching. We will check those, along with any product, valuation, legal or administration costs, before making a recommendation.

What else to consider

For more background, see MoneyHelper’s guide to mortgage interest-rate options.

How Kernow Mortgages can help

We will compare your tracker with the fixed rates available to you, check the total costs and any early repayment charges, and discuss whether reserving a future fixed option makes sense. If it does, we can help with your existing lender or a remortgage elsewhere, subject to eligibility and the lender’s terms.

On a tracker, or coming to the end of your deal? Book a free consultation and we will review your options. You can also explore our remortgage advice or get in touch with the team.

Your home may be repossessed if you do not keep up repayments on your mortgage. Tracker rates can go up as well as down. All mortgages are subject to status, affordability and lender criteria. Article dated 8 November 2026; rates, products and lender terms can change. The payment example excludes fees and is not a mortgage quotation or recommendation.