UK mortgage rates rise as war on Iran uncertainty hits housing market

Key points· Video

• In the United Kingdom, the war on Iran is contributing to rising mortgage rates, increasing pressure on the housing market—one of the key drivers of the British economy.
• The average two-year fixed mortgage rate has risen from 4.83% at the start of March to 5.66% now.
• Meanwhile, the average five-year fixed-rate mortgage has increased from 4.95% to 5.62%.
• This rise, combined with wider economic uncertainty linked to the conflict, is also affecting house prices.
• Lenders and estate agents report that prices fell by 0.6% in May—the fastest monthly decline in almost a year.