Headline: Bank of England warns millions face higher mortgages due to Iran war
- 1 hour ago
- 1 min read
Why this matters: Rising mortgage costs could increase financial pressure on households and slow economic growth across the UK.
Date: 1 April 2026
Tags: Business, Economy, UK
Summary:
Bank of England warns 1.3 million households face rising mortgage payments.
Up to 5.2 million borrowers could see higher costs by 2028.
Around 58% of UK mortgage holders expected to be affected.
Mortgage rates rose sharply, with two-year fixes increasing to 5.84%.
Conflict has pushed oil and gas prices higher, increasing borrowing costs.
Lenders have withdrawn about 1,500 mortgage products from market.
Economic outlook described as “deteriorated” by financial policy committee.
War impact seen as major global supply shock affecting growth and inflation.
Financial system remains stable but risks rising with prolonged conflict.
Markets expect potential interest rate increases later this year.
What’s next: Interest rate decisions and global energy prices will shape future borrowing costs and economic stability.
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