I started these monthly articles in order to get rid of all the unknown regarding what is actually happening with mortgage rates following the mini budget the Russia/Ukraine war. Here we are a few years down the line and this is the first update since the war with Iran started.
It has been very much in the news that interest rates have gone up, I think we know what to expect here before I write anything so I will keep it fairly brief.
What mortgage rates we are looking at?
As ever, we always look at the same 4 scenarios for some consistency. The 4 scenarios are:
- 2 year fix at 90% LTV with a £999(ish) fee.
- 5 year fix at 90% LTV with a £999(ish) fee.
- 2 year fix at 85% LTV with a £999(ish) fee for adverse*
- 5 year fix at 85% LTV with a £999(ish) fee for adverse*
*Adverse in these examples is someone with 5 defaults from 2 years ago. Enough to mean we cant go to the high street.
What mortgage rates are available now?
I have to be very honest in that when I was doing this research, I was obviously expecting there to be a jump. You can see from the headlines above “hiked”, “pulled”, “above 5%” – its all very much mortgage rates going in the wrong direction if you have or want one.
So to do and do the research and see 90% deals have risen by less than 0.25% was a bit of a surprise.
Obviously the adverse deals are a little different and yes, mortgage products are definitely being pulled in that art of the market. But on the high street, rates are being pulled but importantly they are being replaced and although rates are going up, even at 90% LTV its not as dramatically so as the headlines would have you believe.
Mortgage rates in 2026
Here is what I wrote last month…
I still think unless something drastic happens rates will continue to come down throughout the year but slowly
I suppose a war in Iran is classed as drastic and obviously with that, rates have started to go in the opposite direction. With this in mind, I have no idea what will happen with rates this year. The longer the war goes on the bigger effect it will have on inflation and in turn mortgage rates.
Summary
I think the only thing I can summarise is that yes, rates are on the up. But I dont think it is quite as bad as the press is making out.