Mortgage rates in the UK have surged to their highest level in more than a month, driven by a re-escalation of hostilities in the Middle East and rising inflation expectations.
Major lenders, including Santander, Barclays, HSBC, and Halifax, have responded to the shifting risk landscape by repricing existing deals or withdrawing offers entirely.
The move reflects a broader tightening in credit conditions as financial institutions adjust to heightened geopolitical uncertainty.
The repricing comes as bond markets react to renewed tensions involving Iran, which have spooked investors and pushed yields higher.
This volatility has reversed recent stability in the housing finance market, where borrowers had seen some easing of borrowing costs.
The withdrawal of deals by major banks signals a cautious stance among lenders, who are likely to remain hesitant until geopolitical risks subside.