‘Geopolitical uncertainties’ amid Iran war could slow fall in mortgage rates, says Halifax

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Halifax, a major UK mortgage lender, warns that geopolitical uncertainties stemming from the conflict involving Iran could slow the anticipated decrease in mortgage rates. While UK house price growth saw a slight increase in February, the rate of growth has slowed compared to January. The lender attributes this to the Middle East crisis potentially impacting global economies, fueling inflation, and tempering interest rate cuts by the Bank of England. Several UK lenders, including HSBC and Nationwide, have already begun increasing fixed mortgage rates in response to rising swap rates. Experts suggest that ongoing uncertainties regarding interest rates and inflation may cause buyers and sellers to delay housing market activity.
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