---
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"
date: 2026-03-23
canonical: "https://www.share-talk.com/uk-mortgage-rates-hit-two-year-high-as-conflict-drives-costs-higher/"
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"]
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"
---

# UK mortgage rates hit two-year high as conflict drives costs higher

**Published:** March 23, 2026
**Author:** sharetalk
**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)

---

**UK mortgage rates** have surged to their highest levels in two years as the Middle East conflict reshapes expectations for interest rates.

The 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%**.

The sharp move reflects a rapid repricing across the market, with **nearly 1,500 mortgage deals withdrawn**—around a fifth of available products—as lenders react to rising funding costs.

Markets are now expecting further tightening, with the Bank of England forecast to raise rates from **3.75% to 4.75% by year-end**.

The shift has been driven by an energy-led inflation shock, as higher oil and gas prices feed through into borrowing costs.

Analysts 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.

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**Original URL:** https://www.share-talk.com/uk-mortgage-rates-hit-two-year-high-as-conflict-drives-costs-higher/
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