Major UK Lenders Increase Mortgage Rates Amid Iran Conflict

Several major UK lenders increased mortgage rates effective July 21, 2026, following a sharp rise in swap rates triggered by geopolitical tensions and an escalating conflict in Iran. Halifax raised rates by up to 0.2% and removed all mortgage products priced below 4%. Barclays implemented increases of up to 0.2% across purchase, remortgage, and product transfer deals, while BM Solutions raised rates by up to 0.19%.

HSBC and Skipton Building Society also announced pricing hikes for various borrower categories, including first-time buyers and buy-to-let customers. These adjustments follow similar recent moves by NatWest, Nationwide, Coventry Building Society, and Virgin Money. The trend indicates a shift toward a more hawkish stance within the Bank of England's Monetary Policy Committee, with some members supporting a rate hike to 4% during their July 30 meeting.

The rate hikes coincided with the appointment of Andy Burnham as Prime Minister. While the timing presents an immediate economic challenge for the new administration's housing reforms, industry experts maintain that the repricing is a result of international volatility rather than domestic political uncertainty.