Mortgage rates are surging because of the Iran war. Here's what to do.
The Iran war has caused a surge in mortgage rates in the UK, with nearly 1,000 mortgage products pulled by lenders and the average two-year fixed mortgage rate rising by around 0.5%. This has resulted in higher costs for households, including increased energy bills and fuel prices, with the average price of a litre of unleaded petrol likely to reach 150p by Easter.
The UK is facing a fresh cost of living crisis due to the economic storm caused by the war in the Middle East. Mortgage rates have surged, with nearly 1,000 mortgage products pulled by lenders. The average two-year fixed mortgage rate has risen by around 0.5% to 5.35%. This increase means Britons taking out a new two-year mortgage deal will pay £900 a year more on average. The Bank of England has held rates at 3.75% and may consider rate rises. The war has also caused an energy price shock, with experts predicting an increase of over £300 a year to a typical household energy bill. The price of fuel has also risen, with the average price of a litre of unleaded petrol likely to reach 150p by Easter. These increases will put pressure on household budgets, with the cost of transporting food potentially passing on to shoppers.
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