Archive · 24 Jul 2026
Middle East Tensions Drive UK Mortgage Rates Higher
UK mortgage rates have gone up again because of problems in the Middle East.
This has made oil prices go up, which makes it more expensive for banks to lend money.
So, when people in the UK want to get a mortgage to buy a house, they have to pay more.
More than five million people might have to pay more for their mortgages by the end of 2028.
Some people thought rates would keep going down, but now they might have to change their plans.
Experts say it's important to compare different mortgage deals to find the best one.
UK mortgage rates have risen to their highest level in a month due to Middle East tensions.
Average two-year fixed mortgage rate is now 5.58%, and five-year fixed rate is 5.6%.
Over five million homeowners are expected to see higher mortgage repayments by the end of 2028.
Renewed military strikes and Houthi attacks on oil tankers have pushed oil prices to $100 a barrel.
Experts advise borrowers to secure deals with existing lenders and compare offers through mortgage brokers.
- Who
- UK homeowners and mortgage lenders
- What
- Increase in UK mortgage rates due to Middle East tensions
- When
- Recent days, with effects expected until at least 2028
- Where
- United Kingdom
- Why
- Renewed Middle East tensions have pushed up oil prices and lenders' funding costs, influencing mortgage rates.
Optimistic Borrowers
Pessimistic Borrowers
Future Mortgage Rate Trends
Optimistic Borrowers
Borrowers who had hoped for continued declines in mortgage rates may be disappointed as global events have shifted the outlook.
Pessimistic Borrowers
Borrowers who anticipated higher rates may find their expectations confirmed as global tensions push rates up.
- Average Two-Year Fixed Mortgage Rate
- 5.58%
- Average Five-Year Fixed Mortgage Rate
- 5.6%
- Oil Price
- $100 per barrel
- Number of Mortgage Products Withdrawn
- Around 100
- Projected Increase in Mortgage Repayments
- Over 5 million homeowners by end of 2028