Tracker mortgage applications hit 10% as Middle East conflict drives up fixed rates

A borrower with a 25-year £200,000 mortgage pays £1,051.26 monthly with a 3.96% Halifax tracker deal, compared to £1,157.56 for a 4.90% Nationwide fixed rate. Tracker mortgage applications have reached 10% of all applications this month, the highest level since October 2023 and up from 6% in February. This shift follows a rise in fixed rate mortgage costs after several deals were pulled from the market. The increase in rates was driven by conflict in the Middle East, which disrupted market expectations that inflation pressures would ease and the Bank of England would cut interest rates.