The Middle East: Indirect mortgage impact

If your mortgage is coming up for renewal, you’re probably already aware that the days of low interest rates are behind us. Many homeowners are moving off COVID-era deals, fixed at 1–2%, and facing a market where rates are significantly higher.

When it looked like the Bank of England might start cutting rates, global events are throwing in a new layer of uncertainty. One of the biggest factors? The ongoing conflict in the Middle East.

While it may seem far away from your mortgage, global instability especially in oil-producing regions can drive up energy prices. That puts pressure on inflation, even here in the UK. And when inflation is under pressure, the Bank of England becomes more cautious about cutting interest rates.

That means the pace of expected rate reductions could slow, or cuts could be pushed further into the future. That might translate into fewer affordable remortgage options in the short term.

For many homeowners coming off COVID-era rates, this creates a dilemma. Do you fix now, at a higher rate than what you’re used to? Or wait and hope for cuts that may take longer than expected?

What can you do?

• Get in touch early – Explore the wide range of products available, helping you understand your options based on current market forecasts.
• Consider short-term fixes or trackers – If rate cuts do arrive later this year or next, these options could offer more flexibility.
• Don’t assume waiting guarantees better rates – Lender’s price based on future expectations. If uncertainty grows, even the hope of falling rates may not lead to cheaper deals.

Global events like the war in the Middle East may feel distant, but they can influence everything from inflation to your next mortgage deal. Understanding the link can help you make a more informed, confident decision when the time comes to remortgage.

If you’d like to discuss the options available to you, get in touch with one of our friendly advisors.