Iranian conflict and the effects on the mortgage market 

"At Mojo Mortgages, we recognise that global conflict brings a weight of human concern that far outweighs market statistics. While our focus is on your financial well-being, we share the collective hope for a peaceful resolution and aim to provide a grounded perspective on how these distressing events may touch your home life here in the UK.

The conflict in Iran has introduced a new layer of uncertainty into the UK mortgage market. While the situation is fluid, mortgage interest rates will not be isolated from the wider macroeconomic impact of geopolitical uncertainty," says John Fraser-Tucker, Head of Mortgages at Mojo Mortgages.

Our advice

“The current climate naturally creates a sense of hesitation; however, history shows that in periods of international tension, mortgage markets move in anticipation of change rather than waiting for official announcements. We are seeing this play out in real-time. 

“Over the last week, the steady decline in rates we enjoyed earlier this year has hit a roadblock, with several lenders withdrawing products or increasing rates on short notice to account for rising swap rates.While we aren't seeing a ‘mini-budget’ style spike, the window to secure the most competitive deals is moving faster than it was in January. At Mojo, we believe the most proactive step you can take right now is to secure a rate as a safety net. Because the situation is fluid, our advice is no longer to 'wait and see,' but to 'lock and monitor.'”

“By starting your application now, you effectively buy yourself an insurance policy against further increases. Through our Rate Check Promise, if the geopolitical situation stabilizes and rates drop before you complete, we will move you to that lower rate automatically, giving you the security of today’s best deal with the flexibility to benefit from tomorrow’s potential improvements.”

What does this mean for you?

Fraser-Tucker states, "The 'wait and see' approach has become riskier. With swap rates (the price lenders pay for money) increasing already, the window for locking in a lower fixed rate may be narrowing. 

“We've seen a 50% increase in customers proceeding to application from enquiry which speaks to the urgency of 'beating the increases' or hedging against further rises. Advice from the team is as follows:”

If you are remortgaging in 2026: “Around 1.8 million homeowners are due to switch this year. If you’re within 3-6 months of your deal ending, it may be wise to secure a rate now. Most lenders allow you to "book" a rate and switch if a cheaper one appears later.”

If you are a First-Time Buyer: “Market activity is cooling slightly as buyers become cautious. This might mean less competition for houses, but slightly higher monthly repayments than we expected back in January.”

If you are on a Tracker: “Your rate is tied to the Bank of England Base Rate. While a hike is currently unlikely, the "pathway down" to 3% has almost certainly been delayed.”

How our Rate Check Promise protects UK mortgage hunters:

“In a volatile market, deciding when to commit can feel like a gamble. Mojo's Rate Check Promise is designed to give you peace of mind throughout the process. While our brokers work to secure the most competitive deal available today, this service provides an extra layer of oversight; if rates fluctuate, you’ve already secured a ‘safety net’ rate to move forward with.

"Once you have your mortgage offer, our team continues to monitor the market daily. If your lender reduces the price for your specific product before you complete, we’ll alert you. Where possible, we can then look to transition you to that lower rate without the need for a full new application.”

“Because we are a fee-free broker, this service doesn’t cost you a penny. You get the security of a locked-in rate with the flexibility to benefit if the market improves.

Our goal is to ensure that even during global instability, you have total control over your monthly outgoings. You don't need to time the market perfectly when you have a team doing it for you.”

Disclaimer note: Your property may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.