Published: June 5, 2026 • 11:34 PM IST · Updated: June 6, 2026 • 6:30 AM ISTBy TheBriefWire Editorial Team
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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.