The outbreak of the Iran war in late February abruptly ended hopes of UK interest rate cuts in 2026, triggering a surge in mortgage costs that has left many Britons struggling to secure home loans. First-time buyers, those moving between properties, and homeowners refinancing are all feeling the pinch as the Bank of England is now expected to raise rates at least once this year due to renewed inflation threats.
"It feels unfair," said one affected homeowner, reflecting the widespread frustration.
The CEO of Britain's largest housebuilder described the current environment as the toughest for first-time buyers since the 2008 financial crisis, highlighting the severe impact on the housing market.