Bank Base Rate decision - Fleet Mortgages comments

05 November 2026

Steve Cox, Chief Commercial Officer at Fleet Mortgages:

“The MPC has clearly decided it can no longer afford to wait, although whether today's increase to 4% ultimately proves to be the right decision remains open to question. There has been a growing sense that an increase was becoming inevitable, particularly as concerns about the inflation outlook have intensified, but the Committee is making this decision against a backdrop of considerable uncertainty about where the economy goes next. The conflict in the Middle East continues to have a significant influence on the outlook, and there is a danger attempting to get ahead of inflation now could create additional problems for an economy already struggling to generate meaningful growth. However, the unanimous vote for an increase suggests this represents a clear shift in thinking across the Committee, with all nine members convinced an increase was necessary, despite the continuing uncertainty over the economic outlook and the effectiveness of higher rates in tackling the UK’s current inflation level.

“For buy-to-let, the more immediate issue is that landlords have already been dealing with a higher mortgage rate environment, and that has consequences for affordability, refinancing decisions and the ability to make future purchases. We've seen lenders having to respond to rising funding costs over recent weeks, and there is no reason to assume today's decision will bring an end to that process. However, this is also where lenders need to think carefully about the products they offer and how they can support landlords who remain committed to the sector. At Fleet, we've recently launched new five-year fixed-rate products with 5% fees, which provide advisers with additional options to help clients meet affordability requirements where higher rates might otherwise restrict borrowing. These will not be right for every landlord, and the overall cost of the mortgage must always be considered, but they demonstrate why product choice and specialist advice are so important in the current market. For landlords looking to refinance or purchase, I would certainly be exploring the available options now rather than assuming there will be a better opportunity further down the line.”