15/03/2026
Mortgage rates and the Iran conflict – what UK homeowners or buyers need to know
You may have seen headlines linking the war involving Iran to rising mortgage rates in the UK. While the situation is creating short-term uncertainty in financial markets, it’s important to keep some perspective.
Here’s the reality right now:
• Some lenders have increased fixed mortgage rates slightly, with the average 2-year and 5-year fixed deals moving to around 5% in recent days. Although we still have access to rates from high 3% to low 4’s!
• This is mainly because the conflict has pushed oil and energy prices higher, which increases inflation expectations and affects financial markets.
• In response, lenders have adjusted pricing and some mortgage products have been temporarily withdrawn while markets stabilise.
However, there are several reassuring points:
✅ This is not a repeat of the 2022 mini-budget shock. Markets are adjusting but remain orderly.
✅ Mortgage rates are rising modestly, not dramatically. Experts say the increases are largely reversing recent improvements rather than signalling a major spike.
✅ The long-term outlook still depends on inflation and Bank of England decisions, and many economists still expect interest rates to fall later in the year if inflation eases.
In short: global events can create short-term volatility, but the UK mortgage market remains stable and competitive.
If you’re thinking about buying, remortgaging, or your fixed rate is ending this year, the best approach is simply to review your options early and take advice so you can secure a suitable deal and keep it under review if rates change.
If anyone wants to talk through their options, feel free to message me.
