‘Trumpflation’: how the Iran war’s economic storm could affect Britons

Yet another cost of living crisis looms with fuel, food, holiday, energy and home loan prices expected to rise Here we go again. For Britons it has been a rollercoaster few years and just as better times seemed ahead the country has been plunged into a fresh cost of living crisis. The economic storm caused by war in the Middle East is already pushing up the cost of key household outgoings, including mortgage payments, energy bills and driving. There are warnings that the weekly shop will be next. We look at how the unfolding economic crisis caused by the war could affect you. In a few short weeks the Iran war has had a “catastrophic” effect on the UK home loans market with nearly 1,000 mortgage products pulled by lenders. The spike in home loan costs means Britons taking out a new two-year mortgage deal face paying £900 a year more on average than before the Iran war as “Trumpflation” pushes up borrowing costs (based on borrowing £250,000 over 25 years). On Thursday, the Bank of England held rates at 3.75% at its policy meeting. Before the war, the central bank was expected to cut them. Now the talk is of rate rises. This matters if you are trying to get on the property l