Arabic version: ارتفاع تكاليف الرهن العقاري بعد النزاع في إيران

New data reveals that the cost of a typical mortgage has surged by £788 annually in just two weeks, following the escalation of the Iran conflict. This increase pertains to homeowners and buyers securing a 25-year mortgage of £250,000, with the average two-year fixed rate now at 5.28%. According to BBC News, lenders have significantly raised rates and withdrawn competitive deals since the onset of US-Israel strikes on Iran at the end of February.

The average two-year fixed mortgage rate has climbed from 4.83% at the start of March to its current rate of 5.28%, marking the highest level since April of the previous year. For those considering a five-year deal, the average rate has also increased, moving from 4.95% to 5.32% over the same timeframe. This translates to an additional £651 in costs for a typical five-year fixed mortgage compared to two weeks ago.

The current mortgage landscape has seen a reduction of 689 products since March 9, which represents nearly 10% of the market. Major lenders such as Barclays, HSBC, NatWest, Nationwide, and Santander have withdrawn their sub-4% fixed mortgage deals, which were available just a week prior. This shift is particularly concerning for first-time buyers, as noted by Mary-Lou Press, president of NAEA Propertymark, who emphasized the impact of economic uncertainty on mortgage rates.

Industry experts have warned that borrowers should prepare for continued volatility in the mortgage market as the global economy reacts to the ongoing conflict. Adam French, head of consumer finance at Moneyfacts, suggested that borrowers may need to brace for further fluctuations as the situation evolves. Jo Jingree from Mortgage Confidence encouraged borrowers to consult with their brokers for guidance during this uncertain period.