The building society is breaking down the best places for buyers as the US-Iran war is expected to raise the cost of living

Conflict in the Middle East has led to over 500 mortgage deals being withdrawn from the UK market in the past week.

Conflict in the Middle East has scuppered hopes of cuts to the base rate

Yesterday’s Bank of England’s base rate decision has many concerned that mortgage repayments could spike later in the year

All of the biggest banks, including Barclays, HSBC, Lloyds Bank, NatWest and Santander, have raised rates since the beginning of March.

‘War in the Middle East is hammering Londoners looking to buy or remortgage,’ says Adam French, head of consumer finance at Moneyfacts

Lenders have hiked rates on new deals and withdrawn products as war creates uncertainty in the markets.

Sub-4% mortgages have met a rapid demise as the Middle East crisis causes global economic uncertainty

Mortgages have not disappeared in recent weeks as fast as they did in the aftermath of the mini-budget

Borrowers coming off fixed deals face shockingly high new deals following tensions in the Middle East

Rolling coverage of the latest economic and financial news

Official figures showed zero growth in gross domestic product (GDP) in January

The number of owner-occupier loans where borrowers were more than a year behind in repayments represented just over 2% of all home loans in the market

The Financial Conduct Authority (FCA) has called on second charge mortgage firms to raise standards for consumers. In an FCA review, it says that lenders

More than 500 lending products pulled in biggest single upheaval since Liz Truss’s mini-budget in 2022

Nearly 500 mortgage products have been withdrawn from the UK market in recent days, marking the fastest disappearance since the aftermath of the 2022 mini-budget.

Around 1.8 million fixed-rate mortgages are ending in 2026, with homeowners currently facing rising rates

Financial experts say the market can ‘move quickly’ as a result of events such as the conflict between Iran and the US and Israel

Average mortgage rates hit highest since last August in the biggest upheaval since the mini-Budget.

Around 1.8 million fixed-rate mortgages are ending in 2026, with homeowners currently facing rising rates and a shrinking produce choice.

British banks withdrew more home-loan products on Monday than on any day since the 2022 mini-budget ​turmoil, data from financial services provider Moneyfacts showed, as the Iran ‌crisis sent energy prices and UK borrowing costs soaring.

Global uncertainty means inflation going up and swap rates rising

First Direct, Coventry Building Society and Yorkshire Building society are among the lenders adjusting their fixed deals

Several lenders have increased their mortgage rates in recent days, with more signalling they are set to follow

The average five-year fixed homeowner mortgage rate on Monday morning was 4.98%, rising from 4.96% on Friday

Many lenders are increasing rates as market conditions deteriorate

Multiple lenders including HSBC, Nationwide and Coventry Building Society have adjusted pricing on fixed deals, pushing average rates higher as experts warn more volatility ahead

UK mortgage rates rise as Middle East conflict drives up borrowing costs – Breaking news for estate agents and the residential property industry. Independent, unbiased, and factual reporting. A forum for discussion and debate of topics of the day. Subscribe for our free daily newsletter.

Nationwide, HSBC and Coventry Building Society are all putting some mortgage rates up.

Experts say Iran war could cause energy price shock that pushes up UK inflation, in turn forcing up interest rates

UK house price growth slowed in February as value of typical home rose 0.3% to £301,151

First large lenders to do so

HSBC and Coventry Building Society among big names to raise fixed rates, as experts predict more will follow

Moves by HSBC and Coventry Building Society are likely to be followed by other big players

Swap rates, used by lenders to price mortgages, have been rising sharply

Nationwide stated that the average UK house price rose by 0.3 per cent month-on-month in February

Mortgage approvals for home purchases in the UK plummeted to a two-year low in January 2026, with just 59,999 approvals, according to the Bank of England.

January’s figure marked the first time since January 2024 that mortgage approvals for house purchases had fallen below 60,000.

High street rivals hold steady as lenders await the Chancellor’s March 3 announcement

Northern regions see the biggest gains in affordability as interest rates fall, according to Zoopla.

Nationwide’s best rate is now down to 3.54 per cent – but you need a big deposit to benefit

Nationwide will allow mortgage deeds to be signed electronically without a witness

Developers have been calling for measures to help increase demand from buyers as Labour struggles to meet its target of building 1.5m new homes

Home buyers will be able to receive an ‘instant’ decision while viewing property listings.

The bank said saving for a deposit ‘remains one of the biggest hurdles to homeownership’

Fixed-rate loan will not be available on flats and new-builds, and loan must be no more than 4.45 times salary

Santander UK said saving for a deposit ‘remains one of the biggest hurdles to homeownership’

British lenders approved the fewest mortgages for house purchase in 18 months in December, according to unexpectedly weak figures from the Bank of England on Friday that cast doubt on expectations of an early recovery in the housing market in 2026.

Find out the latest mortgage rates and deals from HSBC, NatWest, Santander, Barclays and more.

Many homeowners taking out fixed deals in 2021 will have been on ultra-low rates and could now see their costs jump, Compare the Market warned.