Typical mortgage costs £788 a year more than before Iran war

## Summary
Typical mortgage costs £788 a year more than before Iran war 5 minutes ago Share Save Kevin Peachey Cost of living correspondent Share Save Getty Images A typical mortgage taken out now is £788 a year more expensive than before the Iran war began, new data has revealed. For borrowers, the interest rate on a fixed mortgage does not change until the deal expires, usually after two or five years, and a new one is chosen to replace it. Moneyfacts data shows the average two-year fixed rate has jumped from 4.83% at the start of March to 5.28% now, its highest since last April. For a typical mortgage, that means a five-year fixed deal is now £651 more expensive than a fortnight ago, Moneyfacts said. "Borrowers may need to brace for further volatility in the weeks ahead as the global economy braces for a 'Trumpflation' wave flowing from the US and Israel-led action in Iran," said Adam French, head of consumer finance at the financial information service.

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Typical mortgage costs £788 a year more than before Iran war
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Kevin Peachey
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A typical mortgage taken out now is £788 a year more expensive than before the Iran war began, new data has revealed.
The increase relates to homeowners and buyers with a 25-year mortgage of £250,000, and an average two-year fixed rate of 5.28%.
The figures, compiled by financial information service Moneyfacts, show how lenders have hiked rates and withdrawn deals since the US-Israel strikes on Iran began at the end of February.
The biggest lenders have pulled the best sub-4% mortgage deals, but brokers say borrowers can still navigate the huge uncertainty and should plan well ahead before any current deal expires.
For borrowers, the interest rate on a fixed mortgage does not change until the deal expires, usually after two or five years, and a new one is chosen to replace it.
Variable deals, such as tracker rates, usually move in line with changes to the Bank of England's benchmark interest rate. The Bank's rate-setting committee meets later this week.
Moneyfacts data shows the average two-year fixed rate has jumped from 4.83% at the start of March to 5.28% now, its highest since last April.
For those looking for a five-year deal, the average rate has gone up from 4.95% to 5.32% over the same period and is now at its highest level since February last year.
For a typical mortgage, that means a five-year fixed deal is now £651 more expensive than a fortnight ago, Moneyfacts said.
"Borrowers may need to brace for further volatility in the weeks ahead as the global economy braces for a 'Trumpflation' wave flowing from the US and Israel-led action in Iran," said Adam French, head of consumer finance at the financial information service.
Money
Personal finance
Housing market
Cost of Living
Mortgages
Iran war

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## Expert Analysis

### Merits
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### Areas for Consideration
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### Implications
- The biggest lenders have pulled the best sub-4% mortgage deals, but brokers say borrowers can still navigate the huge uncertainty and should plan well ahead before any current deal expires.
- For borrowers, the interest rate on a fixed mortgage does not change until the deal expires, usually after two or five years, and a new one is chosen to replace it.
- For a typical mortgage, that means a five-year fixed deal is now £651 more expensive than a fortnight ago, Moneyfacts said. "Borrowers may need to brace for further volatility in the weeks ahead as the global economy braces for a 'Trumpflation' wave flowing from the US and Israel-led action in Iran," said Adam French, head of consumer finance at the financial information service.

### Expert Commentary
This article covers mortgage, rate, iran topics. Readability: Flesch-Kincaid grade 0.0. Word count: 318.