UK Mortgages About to Get Pricier as Swap Rates Rise on Iran War

A key gauge that reflects expectations for the future path of UK interest rates has risen to the highest this year, fueling fears over a fresh increase in mortgage costs.

Two-year swap rates, used by lenders to price their mortgage products, rose to 3.60% on Thursday, the highest since October. The rate had been at its lowest since mid-2022 on Feb. 27, the day before US-Israeli strikes on Iran began.