Bank of England interest rates rise to 4%: what it means for home movers

The Bank of England raised Bank Rate by 0.25 points to 4% on 5th November 2026. Mortgage rates may rise, but it doesn’t mean you have to pause your move. Here’s what it means if you’re buying, selling or already mid-move. 

The good news is that an interest rate rise doesn't mean the housing market suddenly stops. People still need to move, and there are still plenty of reasons why buying or selling a home might be right for you. 

If you're buying, you may want to take a little more time to consider your budget and mortgage options. If you're selling, you may be wondering whether there will still be buyers looking for a home like yours.  

But the answer is that every home mover's circumstances are different.  

Here's what Bank of England interest rates could mean for home movers and home buyers in the coming months.  

If you're buying a home, the main thing you may be thinking about is affordability. 

Higher borrowing costs could affect how much you feel comfortable spending, so it's important to understand what the change means for your circumstances. Your mortgage adviser or lender can help you understand how any change affects your borrowing. 

It's also worth remembering that mortgage rates don't automatically move by the same amount as Interest rates. They are influenced by a range of factors, and the impact will vary between mortgage products and individual circumstances. 

If you're already well prepared to buy, however, a rate rise doesn't necessarily change your plans. 

You may already have a mortgage agreement in principle, have your deposit ready or even have found the property you want to buy. If you've been planning your move for some time, you may be in a good position to continue even if other buyers become more cautious. 

If you're buying your first home, you could actually have an advantage in a more cautious market. 

As a first-time buyer, you're usually chain-free. That means you don't have to wait for another property to sell before you can proceed with your purchase. 

For a seller, a buyer who is ready to move without a property to sell can be an attractive proposition. It can mean fewer moving parts, fewer opportunities for delays and greater certainty about the chain. 

So, while mortgage affordability may be an important consideration, being chain-free can give you a strong position when making an offer. 

If you've already done your preparation and know what you're looking for, there is still every reason to feel positive about getting onto the property ladder. 

If you're selling your home, you may be wondering whether higher interest rates will mean fewer people looking to buy. 

Some buyers may decide to wait, particularly if they want to see how mortgage rates develop. But there will still be people who are ready and motivated to move. 

People don't buy homes simply because interest rates are low. They buy because their circumstances change. 

Perhaps they've got a new job, need an extra bedroom, are relocating, downsizing or have found the dream home they've been looking for. 

So, if you're a seller who has already found your next home, you may be just as motivated to sell as you were before the rate announcement. 

For sellers, it's important to know that a changing market doesn't necessarily mean there won't be a buyer for your property. 

An interest rate rise can feel like another piece of uncertainty to navigate when you're already dealing with the many moving parts of buying or selling a home. But if you've already agreed a sale or purchase, an interest rate announcement doesn't need to derail your plans. 

Katrina Lamont, Director of Legal Operations at Eden, says: 

"The Bank of England's decision to raise Bank Rate to 4% will be unwelcome news for many buyers and homeowners, but first-time buyers are likely to feel it most. Many are already stretching to cover deposits and higher living costs, so even a quarter-point rise can affect how much they can borrow. Anyone planning to buy should speak to a mortgage adviser, review their budget and check the terms and expiry date of any existing mortgage offer." 

Katrina continues: "However, it's important first-time buyers don’t feel discouraged. A rise doesn’t mean the door to home ownership is closing, but it does make preparation even more valuable. Understanding the full costs involved, getting a mortgage in principle early, and choosing a conveyancer who will explain each step clearly can help people move forward with confidence" 

"First-time buyers can also take encouragement from the support announced in the Autumn Budget. The new Your First Home scheme and First-Time Buyer ISAs are both aimed at helping people get onto the property ladder and giving them more options when saving and planning their purchase. Higher rates are a potential hurdle, but they're far from the end of the road."

At Eden, we're supporting home movers by transforming conveyancing for the modern world.

Eden's digital-first approach and 24/7 MyEden platform gives you greater visibility of your transaction, helping you understand where you are in the process. You'll have full transparency over what's happening, and what happens next, while our conveyancing team provides the legal expertise needed to keep your move progressing. 

Katrina says:

"Buying a first home involves many unfamiliar financial, legal and practical steps, and visibility and clear communication at every stage really matter. At Eden, we combine technology, legal expertise and human support to make the conveyancing process as simple, clear and fast as possible, so first-time buyers always know where they stand." 

Interest rates will continue to change, and the housing market will continue to respond. But whether you're buying, selling or already somewhere in the middle of a transaction, one thing shouldn't change: you deserve to know what's happening with your home move. 

That's why we're focused on making conveyancing simple, clear and fast.