“However, the sharp rise in global energy prices in response to developments in the Middle East represents a significant shock to the global economy, clouding the outlook. “The outlook for interest rates is particularly uncertain and dependent on whether the demand or supply side of the economy is more adversely affected. “This shift has resulted in a sharp rise in longer-term interest rates (swap rates) that underpin fixed-rate mortgage pricing. Mr Gardner said that, with a big proportion of households on fixed-rate mortgages, many are protected from the immediate impact of higher interest rates. Mortgage rates have already edged upwards in response, and this is naturally becoming a talking point among applicants.

Source: The Herald March 31, 2026 14:32 UTC