Mortgage Rates Soar to New Highs Amid War-Driven Uncertainty

The UK mortgage market has seen significant changes in recent months, with sales agreed falling by 9% annually and two-year fixed rates reaching a new high of 5.29%, up from 4.25% before the war in Iran began.

According to Rightmove, the average two-year fixed mortgage rate has risen to 5.29%, resulting in a £180 increase in monthly payments for new mortgages since the conflict started.

Lenders have repriced their products while the Bank of England held its Bank Rate at 3.75% on September 17, with inflation remaining at 3.1% in August.