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Donald Trump and Iran ceasefire leaving mortgage advisers and their clients "breathing a sigh of relief"

ended 08. April 2026

A 14 day ceasefire has been agreed between the US and Iran. As a result, oil futures have retreated and the markets are expected to react positively.

Source: Truth Social
 

What are the implications for mortgage pricing? Could we see lenders retreat from recent hike? Will this create a new window for those left in the cold?

 

 

 

6 responses from the Newspage community

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Charles Hart
Business Principal at LionHart Mortgages & Protection
There is no better indicator of the impact this war, and the affect of the affectionately named TACO's (Trump Always Chickens Out) nonsensical ramblings is having than the immediate 15% plunge in oil prices first thing this morning.

Mortgage advisers and their clients should be breathing a sigh of relief as this is expected to make the chance of further short notice increases significantly less likely with lenders having a ceasefire of their own.

That being said, it is unlikely we will see immediate reductions or market shifts with such a short term agreement as we wait to see the inflation data later this month. The situation remains both fragile and unpredictable in Iran but the chance to breathe and take stock will be well received.
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Riz Malik
Independent Financial Adviser at R3 Wealth
Oil has already retreated quite sharply and traders have improved their outlook for interest rates in the future. We should see the market react positively, potentially creating a window of opportunity for mortgage pricing. Unfortunately, it is only a window as the tables could turn at anytime. We also have tankers that are a month away from where they should be. However, the overnight ceasefire is the most positive news the mortgage market has had since the beginning of this war.
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Samuel Mather-Holgate
Managing Director & IFA at Mather and Murray Financial
Even if this ceasefire is reality, the damage to western economies and inflation has already occurred. Gilt rates may move down today, but not enough to stave off mortgage rate rises for the next six months. If you haven’t already put your seatbelt on, strap in for a turbulent three years as no one knows that Trump is going to do during his presidency.
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Justin Moy
Managing Director at EHF Mortgages
There is plenty to unravel before we see any wholesale cuts in mortgage rates. This will more likely provide a welcome pause to the daily rate increases suffered by borrowers over the past month or so, as the markets look to recalibrate their expectations for 2026. I would expect lenders to prioritise purchase deals in the short term, given we are in the middle of what is traditionally the peak home-buying season. For those remortgage borrowers looking for significant rate cuts and a better deal, you may need to hold on for a little longer.
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Babek Ismayil
CEO at homebuying platform OneDome
It's far too early to declare that the rate rises we have seen over the past five weeks or so will go into reverse. But, for now at least, we may not see further rate rises as lenders and markets assess and monitor events in the Middle East. It's hard to know what Trump will do next and that uncertainty alone will prevent a sudden repricing downward of rates in the short term. But the ceasefire and reopening of the Strait of Hormuz offers some hope for now.
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Darryl Dhoffer
Founder at The Mortgage Geezer
A whole 14 days of not poking the bear. The US and Iran have signed a ceasefire shorter than most gym memberships, and the markets are swooning like they’ve just witnessed world peace. Oil futures are retreating, and the "experts" are dusting off their party hats, expecting a rally that would make a bull blush.

But let’s get real: - if you’re waiting for wholesale mortgage prices to plummet, don’t hold your breath. This isn’t a "runway for lift-off"; it’s a temporary parking permit. Lenders aren't about to slash rates based on a truce that expires before your next haircut. Two weeks of quiet in the Middle East is a blink in the eye of the bond market. Keep your expectations in the basement—right next to the actual chance of this lasting.