Will My Mortgage Go Up Following the Latest Interest Rate Change?

Given the Bank of England’s base rate changes over the past few years, many homeowners wonder how their mortgage payments will be affected. This article outlines the consequences of the rate hike for various mortgage types, including standard variable rate and tracker mortgages. It offers strategic advice for those considering a remortgage in the current economic landscape.

With the UK facing rising living costs and fluctuating mortgage rates, understanding your options and the potential financial implications has never been more crucial. Whether you’re assessing the need to switch to a fixed-rate mortgage or simply calculating the new costs, this guide provides useful insights to help you through the evolving mortgage market.

Do the interest rate increases mean my mortgage will go up?

The answer is yes if you have a tracker mortgage and possibly if you have a standard variable rate (SVR). You’ll need to speak to your lender or a broker to determine whether your rate will change following Bank of England base rate changes. With a tracker mortgage, your interest rate directly follows the Bank of England base rate, so the increase will be immediate and proportional to any rises or falls.

If you have a standard variable-rate mortgage, the outcome is less predictable as it’s up to your lender. The most likely outcome is that they will choose to increase their rates, which could be slightly more or less than any rise in the base rate.

Fixed-rate mortgages

If you’re already on a fixed-rate mortgage, it’s good news—your interest rate is locked in for a specific term, so any rate hike won’t impact your monthly repayments immediately.

It’s still worth keeping an eye on rates, though. When your fixed term ends, you’ll need to be prepared for a potentially big leap in your repayments if rates have increased significantly since you secured this particular offer.

How much will my mortgage payments be?

If you’re on a variable rate mortgage, use our mortgage calculator below to compare your current interest rate with the new rate you’ll be moved to after the base rate change.

If you plan to apply for a new fixed-rate mortgage or remortgage, you can also use our calculator above to compare the rates on two deals.

When will interest rates go up again?

The Bank of England reviews interest rates eight times a year, roughly every six weeks. The Bank’s primary responsibility is to maintain inflation around 2%.

Although nothing is inevitable, and rates could increase or decrease given the economic situation in the future.

Should you remortgage now?

Whether you should remortgage now largely depends on your current deal. With the base rate at 4% (October 2025), switching to a better deal now may offer potential savings.

For example, if your fixed-rate mortgage expires in the next six months, it may be worthwhile to secure a new deal rather than wait. If you have a standard variable rate or tracker mortgage and are concerned about future rate hikes, remortgaging to a fixed-rate mortgage could help you lock in repayments and provide more financial certainty.

Your best course of action is to seek advice from a mortgage broker. They can assess your tracker versus fixed-rate mortgage options and help you find the best deal.