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UK Mortgage Rates Soar Amid Iran Conflict, Options Dwindle

3/17/2026

Summary

Story summary

The average two-year fixed UK mortgage rate rose from 4.83% to 5.28% due to the Iran conflict, increasing payments by nearly £800.
About 700 mortgage products have been withdrawn, severely reducing options for borrowers.
About 1.8 million fixed-rate deals expire in 2026, potentially hindering buyers.
The Bank of England is expected to maintain rates at 3.75%, with increases possible if inflation rises.
Borrowers should prepare for ongoing market volatility.

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Story summary

The average two-year fixed UK mortgage rate rose from 4.83% to 5.28% due to the Iran conflict, increasing payments by nearly £800.
About 700 mortgage products have been withdrawn, severely reducing options for borrowers.
About 1.8 million fixed-rate deals expire in 2026, potentially hindering buyers.
The Bank of England is expected to maintain rates at 3.75%, with increases possible if inflation rises.
Borrowers should prepare for ongoing market volatility.