𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Around 1.3 million more UK households are facing a jump in their mortgage costs following the economic “shock” caused by the conflict in the Middle East, the Bank of England has warned.

The Bank’s latest financial stability report (FSR) said the UK economic outlook has “deteriorated”, increasing pressure on UK households and businesses.

Oil and gas prices have increased sharply since the conflict began between US-Israeli forces and Iran at the end of February, with equity markets also shaken by the significant volatility.

“The shock will weigh on growth, increase inflation and tighten financial conditions,” according to the report.

Nevertheless, the central Bank’s financial policy committee said the UK financial system has been “resilient so far”.