{"id":133969,"title":"UK mortgage rates hit two-year high as conflict drives costs higher","publisher":"Share Talk","author":"sharetalk","published":"2026-03-23T12:05:09+00:00","modified":"2026-03-23T12:05:09+00:00","canonical_url":"https://www.share-talk.com/uk-mortgage-rates-hit-two-year-high-as-conflict-drives-costs-higher/","markdown_url":"https://www.share-talk.com/uk-mortgage-rates-hit-two-year-high-as-conflict-drives-costs-higher.md","json_url":"https://www.share-talk.com/uk-mortgage-rates-hit-two-year-high-as-conflict-drives-costs-higher.json","category":"B2B","categories":["B2B","Blogs","Business & Support Services","Property & Retail","Technology","Technology, Media & Telecoms"],"tags":["inflation shock","Middle East conflict","mortgage deals","UK mortgage rates"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2024/01/uk-house-750x406-1.jpg?fit=750%2C406&quality=89&ssl=1","format":"news","language":"en-GB","content":"**UK mortgage rates** have surged to their highest levels in two years as the Middle East conflict reshapes expectations for interest rates.\n\nThe average **five-year fixed rate** has risen from **4.95% to 5.45%**, the highest since July 2024, while **two-year fixes** have climbed from **4.83% to 5.43%**.\n\nThe sharp move reflects a rapid repricing across the market, with **nearly 1,500 mortgage deals withdrawn**—around a fifth of available products—as lenders react to rising funding costs.\n\nMarkets are now expecting further tightening, with the Bank of England forecast to raise rates from **3.75% to 4.75% by year-end**.\n\nThe shift has been driven by an energy-led inflation shock, as higher oil and gas prices feed through into borrowing costs.\n\nAnalysts warn that while some deals may return, they are likely to come back at **higher rates**, leaving borrowers facing significantly more expensive mortgages in the months ahead."}