Summary
Mortgage rates in the UK are rising due to unrest related to a war involving Iran. As a result, many mortgage deals have been withdrawn. This situation affects those looking to renew or secure a new mortgage.
Key Facts
- UK mortgage rates have increased, with two-year fixed mortgage rates going above 5%.
- This is the highest rate for two-year fixed deals since August 2023.
- Five-year mortgages are the most expensive they have been since June 2023.
- More mortgage products have been removed from the market since a turbulent economic period in 2022.
- The conflict involving the US, Israel, and Iran has changed financial market expectations.
- Rising oil prices are leading to concerns about higher inflation.
- The cost of borrowing money for two years, measured by bond yields, has been unstable recently.
- The recent war-related events are causing financial uncertainty and affecting mortgage rates.
