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Mortgage Payments Soar £800 Amid Iran Conflict Chaos

3/17/2026

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Summary

Story summary

Mortgage payments have surged by nearly £800 annually due to the ongoing conflict in Iran, according to Moneyfacts.
The average two-year fixed rate rose from 4.83% to 5.28% in just two weeks.
Nearly 700 mortgage deals have been withdrawn, disrupting borrowers.
About 1.8 million fixed-rate deals are set to expire in 2026, complicating refinancing.
Experts warn rising oil and gas prices may fuel inflation, affecting future interest rates.

History

Historical Context

The Iranian Revolution of 1979, which overthrew Shah Mohammad Reza Pahlavi, drastically altered global oil dynamics, causing prices to surge over 400% due to a significant drop in production. This upheaval led to economic repercussions worldwide, including rising mortgage costs in the UK today, echoing the historical impact of instability in oil-producing regions on financial markets and inflation.

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Story summary

Mortgage payments have surged by nearly £800 annually due to the ongoing conflict in Iran, according to Moneyfacts.
The average two-year fixed rate rose from 4.83% to 5.28% in just two weeks.
Nearly 700 mortgage deals have been withdrawn, disrupting borrowers.
About 1.8 million fixed-rate deals are set to expire in 2026, complicating refinancing.
Experts warn rising oil and gas prices may fuel inflation, affecting future interest rates.

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