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Iran-U.S. Tensions Spur Lenders to Raise Mortgage Rates

7/16/2026

Summary

Story summary

Price rise after Iran-U.S. ceasefire breach pushed rates higher, prompting lenders to raise mortgage rates Thursday.
Virgin Money, Barclays and Coventry Building Society lifted rates by 0.35 percentage points.
Economist Liam Daly said the hikes reduce affordability and could sap market momentum.
Brokers warned the moves may dampen confidence as the market exits a lull.
Advisers urged borrowers to lock in rates, noting reservations can be switched if pricing improves.

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Story summary

Price rise after Iran-U.S. ceasefire breach pushed rates higher, prompting lenders to raise mortgage rates Thursday.
Virgin Money, Barclays and Coventry Building Society lifted rates by 0.35 percentage points.
Economist Liam Daly said the hikes reduce affordability and could sap market momentum.
Brokers warned the moves may dampen confidence as the market exits a lull.
Advisers urged borrowers to lock in rates, noting reservations can be switched if pricing improves.