Barclays bank has issued a warning that the ongoing Middle East conflict is prompting UK customers to reconsider their housing plans. According to the bank's latest mortgage data, 27 per cent of homeowners are overpaying on their mortgages to prepare for potential future interest rate increases.
Key findings from Barclays mortgage data
The research reveals that 20 per cent of those remortgaging are seeking to lock in a new rate as soon as possible to avoid future volatility. There has been a 9 percentage point year-on-year increase in the share of customers borrowing to remortgage.
Economic uncertainty remains the top barrier, with 29 per cent stating it could alter their plans. Other factors include stamp duty (27 per cent), moving fees (28 per cent), mortgage rates (24 per cent), and the price gap between current and desired properties (24 per cent).
Impact on wages and affordability
Nearly half of working adults (45 per cent) report that their wages are not keeping pace with rising costs, making it harder to move up the property ladder. The proportion of home purchases below £500,000 rose to 73.2 per cent (up from 70.5 per cent in March 2025). Meanwhile, the share of next-time buyers putting down a deposit under £20,000 increased to 56.7 per cent from 43.2 per cent over the same period.
Expert commentary
Jatin Patel, Head of Mortgages, Savings and Insurance at Barclays, commented: “Periods of geopolitical and economic uncertainty inevitably place greater focus on household finances, and we’re seeing homeowners and potential buyers respond in pragmatic ways. Borrowers are demonstrating resilience by overpaying where they can, reassessing their mortgage options, and thinking carefully about timing to maintain flexibility and control.”
Patel added: “For those moving from their first to their second primary residence, the challenge is more structural. Buyers at this stage often face the widest gap between properties, while still needing to fund deposits, stamp duty and moving costs largely from savings rather than equity alone. That makes second-steppers particularly sensitive to economic pressures, even as they take considered steps to keep their housing plans on track.”
