‘It feels unfair’: the Britons struggling to get a mortgage since Iran war began

P rospects of cuts in UK interest rates in 2026, which were widely expected at the start of the year, were rapidly extinguished when the Iran war started at the end of February. The renewed threat of inflation means the Bank of England is now expected to raise rates at least once this year, with mortgage costs staying higher for longer. The boss of Britain’s largest housebuilder said on Thursday it was the most challenging time to be a first-time buyer since the 2008 financial crisis. We asked people about their experience of housing and mortgage rates after the start of the conflict in the Middle East. ‘We had to pull out of buying a home’ Panos, 36, an executive sous chef, and his wife had put in an offer to buy their first house – a three-bedroom, in Hanwell, west London – but the interest rate on the mortgage they going to take out jumped after the start of the war. When he spoke to his mortgage broker on 13 April, he was told the original rate of 4.18% on a five-year fixed rate that had been available at the beginning of February was now 5.22%. “I asked the broker to explain this to me in plain English, and he told me our payments would rise from £2,600 a month to £3,100,” says Panos. “We could not afford this – it would mean all my wages would go into paying for the house, and we would have to rely on my wife’s wage, which is not very high. It couldn’t be done. …