Why the war in Iran will make your UK mortgage more expensive

By Alper Kara, Head of Department of Economics, Finance & Accounting, Brunel University of London

The war in Iran is affecting the cost of living around the world. In the UK, it is leading to higher energy prices, weaker economic growth and a more expensive future.

It may seem odd that fighting in the Middle East could have such a profound affect on household finances in the East Midlands (and everywhere else in the UK). But since the conflict began on February 28 2026, banks and building societies have withdrawn over 1,500 mortgage products from the UK market.

For many borrowers,…

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