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US-Iran deal reached - Impact on mortgage pricing & the housing market

ended 15. June 2026

The US and Iran have reached a deal to end the war.

In a Truth Social post, Donald Trump announced that the Strait of Hormuz would open on Friday, when the deal is signed. Tehran has also confirmed that a deal has been reached.

Given the turbulence the war has created, which has fed through to fixed-rate mortgage pricing, what are the implications? Is this enough to save the UK housing market? Will borrowers benefit from better pricing?

 

 

 

7 responses from the Newspage community

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Jamie Elvin
Director at Strive Mortgages
An end to the conflict is undoubtedly positive news for mortgage markets, particularly if it helps ease pressure on oil prices and global inflation expectations. We could see some lenders become more competitive on fixed-rate pricing in the coming weeks, but borrowers shouldn’t expect a dramatic overnight shift. While this removes one source of uncertainty, the direction of UK mortgage rates will still be driven largely by inflation, swap rates and Bank of England policy. It’s encouraging for the housing market, but it’s not a silver bullet.
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Rupert Collingwood
Founder at The London Broker
Whilst the deal is welcome news, it will likely take time for any benefits to be felt by homeowners and borrowers meaning that the immediate impact on the UK housing market will likely take time to trickle through. However, interest rates are just one of a number of systemic factors currently impacting UK housing, including the cost of goods, energy prices as well as tax and the current UK Government's legislative agenda. Whilst we must hope that the easing of traffic through the Straits of Hormuz will help to lower the costs of goods and reduce energy prices, we need to look closer to home and for our own Government to address the very real domestic factors currently causing a drag on property transaction levels and prices.
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Riz Malik
Independent Financial Adviser at R3 Wealth
If this deal holds and oil pricing continues to fall, we could see positive movements in fixed-rate pricing by the end of the week. The 'Trump Tax' that has been added to many household budgets could be diminishing. We are not out of the woods yet, but this is certainly the most positive announcement for mortgage pricing this year.
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Justin Moy
Managing Director at EHF Mortgages
There have been too many false dawns thus far to take any announcement at face value, so whilst there may be a small ripple of improvement with mortgage rates, we shouldn’t be hanging on for wholesale changes just yet.
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Emma Jones
Managing Director at Whenthebanksaysno.co.uk
The end to the war in the Middle East should be a real boost for borrowers and bricks and mortar generally. Inflation fears and the increased cost of borrowing have really dented demand in recent months. Everything, of course, depends on whether the deal that has been struck holds. There is still a lot of uncertainty. Swap rates, which are used to price fixed rate mortgages, will likely head south on the news and we may see lenders start to shave their rates in the days ahead. The full impact may not feed through until early next week after the official signing ceremony, but either way things do look more positive. The summer for the property market may yet be saved.
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Babek Ismayil
CEO at homebuying platform OneDome
The end to the war in the Middle East, which sent mortgage rates spiralling, can only be a positive for the property market. Many prospective buyers have been sitting on their hands due to higher mortgage rates and inflation worries, so if this deal really does end the war, sentiment should improve and demand could be reignited.
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Chris Barry
Director at Thomas Legal
The housing market will benefit from some much needed good news and the first this year. We have seen a 17% reduction in new enquiries over the past month which is a delayed result from interest rates increasing the month prior.

Stability will bring confidence to buyers and sellers who have been holding off on making a decision to move