The average two-year fixed rate has jumped by 101 basis points since the outbreak of war to reach 5.84% this morning.
Moneyfacts’ data shows the average two-year rate surged by 7bps from 5.77% overnight, as several lenders’ pricing updates took effect today.
On February 26, just prior to the air strikes on Iran, the average two-year rate was 4.83%.
It means that borrowing costs on a £250,000 mortgage at the average two-year rate are now £1,800 per year higher than they were before the conflict.
Five-year fixed rates have risen from an average of 4.95% to 5.76% over a similar timeframe.
Moneyfacts personal finance analyst says: “Borrowing costs continue to climb.
“While house price growth accelerated in March, the positive momentum may be short-lived as rising costs could dampen borrowers’ confidence, bringing down demand as they may struggle with affordability.
“Many households may have to tighten their budgets in response to these rising costs, and first-time buyers with smaller deposits may be held back from getting on the property ladder.”
So far this week, lenders including NatWest, TSB, Skipton have announced increases this, most of which come on top of previous recent rate rises.
