Mortgage rates increased as Iran war hits borrowers
How the Iran war is impacting UK mortgage rates
- Several UK mortgage lenders, including Nationwide and HSBC UK, are increasing interest rates for various mortgage products, including for first-time buyers and those remortgaging.
- The increases are attributed to the ongoing conflict in the Middle East, which is causing oil and gas prices to rise and threatening to push up inflation.
- Experts are concerned that rising inflation could pressure the Bank of England to delay or reverse planned interest rate cuts, impacting mortgage rates.
- Lenders are heavily influenced by 'swap rates', which reflect market expectations for the Bank of England's interest rates, and these have risen significantly due to global events.
- The average two-year fixed mortgage rate is now 4.84 per cent, and the five-year fixed rate is 4.96 per cent, with the Bank of England's next interest rate decision due on 19 March.
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