Skip to main navigation Skip to search Skip to main content

Why tensions in the Middle East are keeping British mortgage rates high

Press/Media: Expert Comment

Description

With inflation recently easing, British borrowers had anticipated falling rates and cheaper monthly mortgage payments. Instead, disruption from America’s war in Iran has driven up inflation. Giray Gozgor and Erhan Kilincarslan explain why the “Hormuz effect” is keeping inflation and mortgage rates high, and how the Bank of England can respond.  

Period16 Apr 2026

Media contributions

1

Media contributions

  • TitleWhy tensions in the Middle East are keeping British mortgage rates high
    Degree of recognitionNational
    Media name/outletLSE British Politics
    Media typeWeb
    Country/TerritoryUnited Kingdom
    Date16/04/26
    DescriptionWith inflation recently easing, British borrowers had anticipated falling rates and cheaper monthly mortgage payments. Instead, disruption from America’s war in Iran has driven up inflation. Giray Gozgor and Erhan Kilincarslan explain why the “Hormuz effect” is keeping inflation and mortgage rates high, and how the Bank of England can respond.
    URLhttps://blogs.lse.ac.uk/politicsandpolicy/why-tensions-in-the-middle-east-are-keeping-british-mortgage-rates-high/
    PersonsGiray Gozgor, Erhan Kilincarslan
View all 1
View less

Related content