Rates Up to 4%: A Two-Minute Guide for Preston and South Ribble Homeowners

In two minutes, here's what yesterday's Bank of England decision (Thursday 5 November) means for homeowners, buyers and renters in Preston and South Ribble, plus the dates that matter from here, including the new ones from last week's Budget.

What happened to interest rates on 5 November?

The Bank of England raised Bank Rate by a quarter of a percentage point, from 3.75% to 4%, on a vote of 8 to 1. It's the first rise since August 2023. Bank Rate was last at 4% between August and December 2025.

The reason is energy prices. CPI inflation was 3.5% in the 12 months to September 2026, and the Bank expects it to rise to around 5% by the middle of 2027 before falling as the effect of higher energy prices fades.

Will the rate rise change my mortgage payments?

It depends on your type of mortgage:

• Fixed rate: No. Your payment stays the same until your deal ends. In the second quarter of 2026, 90% of outstanding homeowner mortgage balances were on fixed rates.
• Tracker: Yes. Your rate follows Bank Rate, and your lender will write to you with the new payment and when it starts.
• Standard variable rate (SVR): Possibly. Your lender decides how much of the rise to pass on, so read their letter carefully.
• Fixed deal ending by May 2027? Speak to a mortgage broker now rather than in the final few weeks.

How does the Budget affect inflation and rates?

It should help a little. In the minutes published with Thursday's decision, the Bank says the Budget's new measures are expected to lower CPI inflation by a quarter of a percentage point by the second quarter of 2027. That pulls in the same direction as the rate rise.

Which dates should homeowners and buyers know about?

• 29 October 2026 (already in place): The Lifetime ISA withdrawal charge fell from 25% to 20% for first-time buyers buying above the £450,000 price cap. A charge still applies, but it's smaller.
• 17 December 2026: The Bank of England's next interest rate decision.
• By the end of December 2026: Pre-registration opens for Your First Home, the new equity loan scheme for first-time buyers of new-build homes in England, with deposits from 2.5% and a government loan of 20%.
• January 2027: A £100 Household Energy Payment for up to 20 million homes in council tax bands A to D in England, paid through the council tax system.
• February 2027: Full applications open for Your First Home.
• April 2027: The first Your First Home loans are expected. The extended VAT cut on household electricity should take around £50 off the Ofgem price cap. Tax rates on savings and property income rise by a further two percentage points, which matters for landlords.
• July 2027: The VAT cut on household electricity is due to end.

If you're a first-time buyer looking at new-build homes around Preston and South Ribble, it's worth checking which local developers sign up to Your First Home once the details are published.

Can my landlord put the rent up because interest rates have risen?

Not simply because of the rate rise. In England, your landlord can only increase the rent once a year, must give you at least two months' notice using the correct form (Form 4A), and you can challenge the increase at the First-tier Tribunal.

What should I do now?

If you'd like to talk through what the rate rise means for your own plans, get in touch or call us on 01772 746100. Sometimes the honest answer is that it changes nothing for you, and we'd rather tell you that than leave you worrying.

Frequently asked questions

Will my fixed-rate mortgage go up?

No. A fixed rate stays the same until your deal ends, whatever happens to Bank Rate in the meantime.

Will interest rates keep rising?

Nobody knows for certain. The Bank of England says policy is not on a pre-set path and it decides meeting by meeting. The next decision is on 17 December 2026.

When can I apply for Your First Home?

Pre-registration opens by the end of December 2026, with full applications from February 2027. The scheme is for new-build homes in England from developers who have signed up.

If you know a homeowner or first-time buyer in Preston or South Ribble who's worried by this week's headlines, please pass this on.

How settled is all this?

Everything above reflects the position published on 5 November 2026. The Bank of England decides Bank Rate meeting by meeting, so nothing here is a forecast. Several Budget measures, including Your First Home and the new First Time Buyer ISA, still need detailed guidance, and dates and eligibility can change before they take effect. Please check the latest position on GOV.UK, or with your lender or a qualified adviser, before making any decision.

This article is for general information only and isn't financial or legal advice. Mortgage decisions depend on your own circumstances, so always speak to a qualified adviser before you act.

Straight answers from an Ethical Agent

When the headlines turn worrying, you want advice from someone who'll tell you how things really stand. That's part of why Roberts & Co belongs to the Ethical Agent Network (EAN). Every member is independently assessed on honesty, service and community care, membership can't be bought, and it has to be earned again to keep it.

In practice, that means we'll always give you the full picture, even when the honest answer is to wait, or that nothing needs to change at all. If you'd like to know more about the EAN or how we work, just ask.

Sources: Bank of England, Monetary Policy Summary and minutes of the Monetary Policy Committee meeting ending 4 November 2026, published 5 November 2026; Bank of England, Official Bank Rate history; Office for National Statistics, Consumer price inflation, UK: September 2026, released 21 October 2026; Scottish Government, Scottish Housing Market Review Q3 2026, 27 October 2026, using FCA data; HM Treasury, Budget 2026, GOV.UK, 28 October 2026; GOV.UK, Assured periodic tenancies: a guide for tenants, Rent increases (Renters' Rights Act 2025, in force since 1 May 2026). Checked 5 November 2026.

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