Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Major UK Lenders Raise Mortgage Rates Amid Iran Conflict Uncertainty

Halifax, Barclays, HSBC, and Skipton Building Society are among the latest major lenders to increase mortgage rates, as ongoing conflict in the Middle East creates market uncertainty. The changes affect a range of fixed and tracker mortgage products for first-time buyers, homemovers, remortgagers, and buy-to-let (BTL) borrowers.

Halifax has raised rates by up to 0.2% on two-, three-, and five-year fixed mortgages for homemovers and first-time buyers, and has removed its sub-4% mortgage rates. Tracker rates for first-time buyers and homemovers have increased by 0.1%, with remortgage tracker rates also rising by 0.1%. These changes take effect from 21 July.

BM Solutions, the buy-to-let arm of Lloyds Banking Group, has also increased rates by up to 0.19% for purchase and remortgage deals, including for individual and limited company borrowers. Product transfer and further advance rates have also been raised.

HSBC will implement mortgage rate increases on 21 July, affecting first-time buyer, homemover, remortgage, and BTL products for both UK and international borrowers. Skipton Building Society has announced rate increases for fixed rate mortgages for new and existing borrowers, effective from 21 July, with current rates being withdrawn at 9pm on 20 July. Barclays has also raised rates by up to 0.2% across purchase, remortgage, and product transfer deals.

Recent weeks have seen similar moves from other lenders, including NatWest, Nationwide, Coventry Building Society, and Virgin Money, who have all raised mortgage pricing.

These changes are relevant for letting agents and inventory clerks, as increased mortgage costs may impact landlords’ decisions and the wider rental market. The adjustments to buy-to-let rates, in particular, could influence the affordability and availability of rental properties.