‘It feels unfair’: Britons struggle to get mortgages since Iran war

Expectations of UK interest rate cuts in 2026, widely held at the start of the year, evaporated after the Iran war began at the end of February. The renewed threat of inflation means the Bank of England is now expected to raise rates at least once this year, leaving mortgage costs higher for longer.

The boss of Britain’s largest housebuilder said it was the most challenging time to be a first-time buyer since the 2008 financial crisis. Panos, 36, an executive sous chef, and his wife had an offer on a three-bedroom in Hanwell, west London, but the mortgage rate they planned to take out jumped after the war began.

A five-year fixed rate that had been available at the beginning of February at 4.18% had risen to 5.22% by 13 April, pushing their monthly payments from £2,600 to £3,100. They could not afford that increase and had to pull out, and will continue to rent while mortgage rates improve.

United Kingdom, Hanwell

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