The mortgage market has been plunged into a period of intense volatility as geopolitical tensions trigger a sharp reversal in pricing trends. Barclays, Accord, and Gen H are the latest lenders to hike rates, while Moneyfacts reports that fixed-rate mortgage averages have climbed this week due to the economic fallout from the war in Iran.
Explore these and other major industry updates below:
Barclays, Accord and Gen H are latest to hike rates
Lenders, including Barclays, Accord, and Gen H joined the upward trend by hiking mortgage rates last week. Geopolitical tensions involving Iran spooked financial markets, causing swap costs to climb and dashing hopes for multiple Bank of England cuts. While Gen H promised to lower prices eventually, experts noted that rising energy costs and gilt yields forced firms to protect margins. The industry braced for further volatility as cheaper deals rapidly vanished.
Fixed-rate mortgage rates rise this week due to Iran war: Moneyfacts
Average fixed-rate mortgage costs climbed higher this week as geopolitical conflict in the Middle East abruptly shifted market sentiment. Data from Moneyfacts confirmed that typical two-year and five-year fixed rates rose by 2bps following a sharp spike in swap rates. While the spring homebuying season initially promised competitive deals, major lenders including HSBC and Nationwide quickly adjusted their pricing. This unexpected volatility left borrowers navigating a rapidly changing and complex landscape.
Nationwide becomes latest lender to increase rates
Nationwide joined the growing list of lenders raising fixed rates by up to 0.25% as market optimism began to fizzle out. Experts noted that while borrowing costs had previously been heading downwards, fresh geopolitical uncertainty quickly reversed that trend. With swap rates climbing and inflation fears resurfacing, the society followed HSBC and Coventry in protecting its margins. Advisers urged borrowers to move fast before recent pricing improvements completely unwound.
Lenders continue to hike rates
The mortgage market remained in a spin last week as a fresh wave of lenders pushed through significant price hikes. Heavyweights like Halifax and NatWest increased fixed products, while Principality raised rates by up to 0.30% across various ranges. Saffron and Fleet took more drastic steps by withdrawing numerous deals entirely to navigate the volatility. Despite the sudden scramble, firms aimed to balance their books while keeping the dream alive.
Mortgage rate instability will correct when Iran conflict stabilises: Knight Frank
Knight Frank analysts remained optimistic that recent mortgage pricing hikes and product withdrawals would eventually correct once Middle Eastern tensions stabilised. While average fixed rates topped 5% following a defensive move by banks, experts suggested that a swift resolution could still allow for a base rate cut by summer. However, the market stayed cautious, noting that prolonged energy price volatility or infrastructure damage could keep triple-digit oil prices around.
BTL lenders pull entire ranges amid ‘exceptional’ volatility
Buy-to-let lenders scrambled to manage “exceptional” market conditions last week as several firms pulled their entire product ranges without warning. Vida Homeloans led the sudden exodus, promising a swift return once volatility settled, while Aldermore and Quantum Mortgages also withdrew fixed rates to reprice. Although the rapid shift caused some headaches for brokers, these professional maneuvers aimed to navigate the global economic climate and fluctuating swap rates with precision.
Santander for Intermediaries and TSB make rate increases
Santander and TSB joined the growing ranks of lenders adjusting their pricing as geopolitical tensions continued to rattle financial markets. Both firms pushed through rate increases across their residential and buy-to-let portfolios, with Santander hiking some deals by 0.24%. Experts noted that rising oil prices and gilt yields forced these professional maneuvers to protect margins. Despite the shifts, lenders remained focused on navigating the sudden volatility with a steady hand.
Mortgage Strategy Awards 2026 shortlists announced
The Mortgage Strategy Awards 2026 shortlists were finally revealed, bringing a welcome burst of celebration to a resilient industry. Despite recent market challenges and geopolitical jitters, the high calibre of submissions reflected remarkable professionalism and innovation. Commercial director James Prosser praised the phenomenal response and competitive judging process for this year’s refreshed categories. Firms and individuals across the sector eagerly anticipated the upcoming ceremony at its brand-new, prestigious venue.
News Analysis: AR anger at £250k in unpaid proc fees
Advisers at PKD Mortgage Network faced a “horrendous” year as the firm withheld £250,000 in unpaid procurement fees. Director Manvinder Sehmi blamed frozen bank accounts and a bizarre forex scam for the delays before the FCA finally halted regulated activities in February. While some brokers were owed up to £90,000, they professionally voiced their frustrations over the missing millions. Now, the industry watched closely as the network’s future remained shrouded in mystery.
TSB to hike ALL products by 50bps
TSB sent shockwaves through the mortgage market last week by hiking prices across its entire product range by 50 basis points. The lender notified brokers that residential, buy-to-let, and product transfer rates would all rise by half a percentage point overnight. Experts described the move as a significant response to rising swap rates and oil prices. Advisors warned that sub-4% deals were vanishing quickly, urging borrowers to secure rates immediately.
