- Mortgage rates have climbed to their highest point in a month, with the average two-year fixed deal reaching 5.59 per cent and the average five-year deal at 5.61 per cent.
- The rise in rates is primarily linked to a re-escalation of hostilities in the Middle East, particularly the US-Iran conflict and the closure of the Strait of Hormuz.
- These geopolitical tensions have led to increased oil prices, higher energy costs, and elevated inflation expectations, which subsequently push up swap rates that dictate mortgage pricing.
- Several prominent lenders, including Santander, Barclays, HSBC, and Halifax, have reacted by repricing or withdrawing more than 100 mortgage deals over the past week.
- Rachel Springall, a finance expert from Moneyfacts, advises borrowers to consider securing new deals with their current lenders or consulting a mortgage broker to navigate the unstable market conditions.
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