Finance
UK banks pull the most mortgage products in 3 years amid market turmoil over iran
Published by Global Banking & Finance Review®
Posted on March 10, 2026
2 min readLast updated: March 10, 2026
Quick Summary
On March 9, 2026, UK lenders pulled 308 mortgage products—the largest single‑day withdrawal since the 2022 mini‑budget turmoil—driven by surging gilt and swap rates amid the Iran conflict, putting pressure on borrowers and pushing rate repricing ahead.
UK Banks Withdraw Highest Number of Mortgage Products Since 2022 Due to Iran Crisis
Impact of Iran Crisis on UK Mortgage Market
By Lawrence White
Record Number of Home-Loan Withdrawals
LONDON, March 10 (Reuters) - British banks withdrew more home-loan products on Monday than on any day since the 2022 mini-budget turmoil, data from financial services provider Moneyfacts showed, as the Iran crisis sent energy prices and UK borrowing costs soaring.
Lenders withdrew 308 residential mortgage products from the market on March 9, compared with 935 pulled on September 27, 2022, when a new government under then-Prime Minister Liz Truss announced huge tax cuts funded by borrowing.
Consequences for Borrowers and the Market
The renewed turmoil in Britain's home loan market, where prices had been edging down in recent weeks, shows how the conflict in Iran is having consequences far from the Middle East, as it pushes up yields on British government bond and swap markets on which mortgage prices are based.
Monday was the biggest single-day fall in the market since that record day in 2022, apart from July 23, 2024, when a single specialist lender streamlined its products, Moneyfacts said.
Lender Reactions and Future Outlook
The mortgage market turmoil this week marks "a sharp and sudden adjustment by many lenders reacting to rapidly rising swap rates," said Adam French, head of consumer finance at Moneyfacts.
Some of those products could return as lenders adjust to higher rate expectations, he said, but the development would nonetheless hit borrowers hard and rate rises will now depend on how global markets and inflation react to the Iran crisis.
"We're likely to see another wave of lenders withdrawing or repricing deals over the coming days, including some who only increased rates last week," said Nicholas Mendes, mortgage technical manager at broker John Charcol.
Reporting Credits
(Reporting by Lawrence White, additional reporting by Iain WithersEditing by Gareth Jones)
Key Takeaways
- •Moneyfacts data shows 308 residential mortgage products were withdrawn on March 9, the highest since September 27, 2022, apart from a specialist streamlining on July 23, 2024. (en.wikipedia.org)
- •The Iran war has triggered sharp increases in UK gilt yields (e.g. two‑year yields rose to ~3.8–4.13 %) that underpin swap and mortgage pricing, prompting urgent lender reaction. (theguardian.com)
- •Market expectations for Bank of England rate cuts have collapsed: cuts that were highly likely before the crisis are now priced out or deferred until summer 2026 at the earliest. (theguardian.com)
References
Frequently Asked Questions about UK banks pull the most mortgage products in 3 years amid market turmoil over Iran
1Why did UK banks withdraw mortgage products this week?
UK banks withdrew mortgage products due to market turmoil following the Iran crisis, which led to soaring energy prices and higher UK borrowing costs.
2How many mortgage products were withdrawn by British banks?
On March 9, British banks withdrew 308 residential mortgage products, the highest since the September 2022 mini-budget turmoil.
3What impact does the Iran crisis have on the UK mortgage market?
The Iran crisis has caused increased yields on UK government bonds and swap markets, which pushed mortgage prices and borrowing costs higher.
4Could withdrawn mortgage products return to the market?
Some withdrawn mortgage products could return as lenders adjust to higher rate expectations in response to the market situation.
5Will mortgage rates continue to rise in the UK?
Future mortgage rate rises will depend on how global markets and inflation react to the ongoing Iran crisis.
