Published

Finance05 April, 20261 min read

Markets Rally As US-Iran Ceasefire Sparks British Mortgage Rate Relief

Two-week US-Iran ceasefire triggers global market rally. UK mortgage rates expected to fall amid ceasefire relief.

Read the story
Markets Rally As US-Iran Ceasefire Sparks British Mortgage Rate Relief
Image: نورنیوز

Ceasefire Calms Markets

City traders cut forecasts for UK interest rate rises after a two-week ceasefire. Money markets fully price only one Bank of England hike by December, down from two. Brent crude plunged 13.3% as supply concerns eased.

The FTSE 100 surged 3.09%. MortgageProfessionalAmerica noted it was too early to tell if consumer confidence would improve.

Image from ABC News
Image: ABC News
Reporting for this sectionThe GuardianMortgage Professional AmericaTradingView

Mortgage Rates React

Mortgage lenders began responding to the shifting outlook. The lowest fixed-rate deals had risen more than 1 percentage point since the war started.

1.8 million remortgagees could be affected in 2026. The crowding out of buyers by mortgage cost inflation remains the biggest obstacle to healthy turnover.

Image from AD HOC NEWS
Image: AD HOC NEWS
Reporting for this sectionThis is MoneyMortgage Professional America

Economic Uncertainty

The UK economic outlook remains clouded by inflation pressures and higher interest rates. The Halifax house price index fell 0.5% in March.

Borrowing costs remain the biggest challenge for new buyers. The OBR's growth forecast is now likely obsolete.

Reporting for this sectionMorningstar CanadaMortgage Professional America