UK Finance Ltd.

04/01/2026 | Press release | Distributed by Public on 04/01/2026 10:04

Reports and Publications What global tensions could mean for your mortgage

With a conflict 3,000 miles away driving up UK mortgage rates, how will this affect customers looking to refinance their loans?

Put simply, the war in the Middle East means that, currently, these customers will pay more when they look for a new rate. As the conflict in the Middle East rages on, the cost to lenders of wholesale funding is both elevated and volatile, driving up pricing for new mortgages. In a year where 1.8 million fixed rate mortgages are set to come to the end of their deal period, this report examines the prospects for mortgage customers looking to refinance their loans amidst this market disruption.

We find that the vast majority of customers will still have a good degree of wiggle room after they refinance. However, the scale of the challenge is very different, depending on when customers took out their previous loan, with those who last borrowed in 2021 facing by far the greatest payment shock.

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UK Finance Ltd. published this content on April 01, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 01, 2026 at 16:04 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]