UK mortgage rates are rising sharply as lenders adjust to renewed inflation pressures stemming from the conflict in Iran.
More than 30 lenders have increased their rates in recent weeks, according to data from Moneyfacts, signaling that the Bank of England's latest decision to hold interest rates steady has not translated into cheaper borrowing for consumers.
The divergence between central bank policy and market reality highlights the lag effect of geopolitical shocks on consumer credit.
While the Monetary Policy Committee opted for a pause, the immediate impact of energy and supply chain disruptions linked to the Iran war is pushing commercial lenders to protect their margins.
Experts warn that homeowners should not expect mortgage rates to decline "any time soon," as the inflationary backdrop remains volatile.
This trend mirrors broader global uncertainty, where central banks are grappling with the trade-off between supporting growth and anchoring inflation expectations.