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Wed, 01 Apr 2026

Wed, 01 Apr 2026 Warning Iran war 'shock' could push up mortgages for 1.3m homeowners

Higher energy prices could lead to higher borrowing costs for homeowners, the Bank warns.

* About 1.3 million UK homeowners may face higher mortgage payments by 2028 due to rising borrowing costs.
* The Bank of England expects an additional 1.3 million households to face increased mortgage costs on top of the original 3.9 million already facing increases.
* The cost of government borrowing and energy prices have risen sharply since the US-Israel attacks on Iran began, leading to higher inflation and economic growth concerns.
* The Bank's Financial Policy Committee warns that sustained high energy and mortgage costs could put pressure on UK households and businesses.
* Interest rates may remain at their current level or even be raised again by the Bank of England to control inflation.
* Mortgage rates have already increased over the last month, with some of the cheapest deals being withdrawn.
* The number of mortgage products available in the UK has fallen from 8,500 to 7,000 since the conflict began.