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UK Mortgage Rates Surge Amid Middle East Turmoil

3/12/2026

42 3 Full Breakdown

Summary

Story summary

Average UK mortgage rate has risen above 5% due to turmoil in the home loan market linked to the Middle East conflict.
Nearly 500 mortgage products were withdrawn in 48 hours, the most upheaval since the 2022 mini-budget.
HSBC and TSB have raised rates, with the two-year fixed-rate at 5.01% and the five-year at 5.09%.
Experts warn higher oil prices could lift inflation and influence future Bank of England decisions.

History

Historical Context

The UK's cost-of-living crisis intensified in 2022, driven by rising inflation and stagnant wages since 2021. Following a controversial mini-budget in September 2022, mortgage rates surged above 5%, affecting nearly 500 products. This turmoil reflects broader economic instability linked to the COVID-19 pandemic and the Russo-Ukrainian war, threatening home affordability for many UK residents.

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Story summary

Average UK mortgage rate has risen above 5% due to turmoil in the home loan market linked to the Middle East conflict.
Nearly 500 mortgage products were withdrawn in 48 hours, the most upheaval since the 2022 mini-budget.
HSBC and TSB have raised rates, with the two-year fixed-rate at 5.01% and the five-year at 5.09%.
Experts warn higher oil prices could lift inflation and influence future Bank of England decisions.

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