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UK Mortgage Rates Surge Amid Iran Conflict, Cost Rises

3/18/2026

50 9 Full Breakdown

Summary

Story summary

UK mortgage rates have risen as lenders pull nearly 700 deals amid the Iran conflict.
The average two-year fixed rate has increased from 4.83% to 5.28%.
The annual cost for a typical £250,000 mortgage has risen by about £788.
Only nine fixed-rate options below 4% remain.
The Bank of England's upcoming rate announcement is highly anticipated.

History

Historical Context

The UK mortgage crisis began in 2007, highlighted by Northern Rock's collapse, which marked the first bank run in 150 years. In response, the Bank of England slashed interest rates to 0.5% in 2008, injecting £137 billion to stabilize the banking sector. Today, rising mortgage rates averaging 5.28% reflect ongoing vulnerabilities in the housing market, echoing past economic instability.

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Story summary

UK mortgage rates have risen as lenders pull nearly 700 deals amid the Iran conflict.
The average two-year fixed rate has increased from 4.83% to 5.28%.
The annual cost for a typical £250,000 mortgage has risen by about £788.
Only nine fixed-rate options below 4% remain.
The Bank of England's upcoming rate announcement is highly anticipated.

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