Mortgage rates show signs of falling after Iran war peak

Mortgage rates show signs of falling after Iran war peakJust nowShareSaveAdd as preferred on GoogleKevin PeacheyCost of living correspondentGetty ImagesMajor mortgage lenders are making "meaningful" cuts to the rates on new deals, bringing some solace to first-time buyers hit by the economic impact of the Iran war.Money markets are reacting to hopes of a long-term truce in the war so the recent rapid rise in borrowing costs has halted and is now starting to reverse.Experts say there is some momentum in mortgage rate reductions, but the situation remains delicate with borrowers still exposed to the possibility of sudden shifts in mortgage costs.First-time buyers say the change is a relief although the cost of buying a home remains painfully expensive for many at a time when other bills have risen.Amy Worrell, 26, and her boyfriend Tommy Adeyemi, 30, are buying a first home together in Hertfordshire, having been saving hard for five years.In the space of days, the mortgage rate they looked like getting rose sharply - but they now hope that could fall back before they finalise their move.Amy WorrellTommy and Amy have saved hard in order to buy a home"It makes such a big difference," said Amy. "We've already had to extend our mortgage by five years to 40 years."Both are in good jobs, still live at home to avoid high rents, have made sacrifices in their 20s to save money and are still finding it a huge stretch."Having a home shouldn't be a luxury," she said. "I worry about how someone working in a supermarket could get a home."She drives to work as an assistant buildings manager five days a week, so is also contending with higher petrol prices caused by the war.Official data from the Office for National Statistics showed that two-thirds (67%) of adults reported that their cost of living had increased in March, with fuel and food the key factors.'Relief'For borrowers, the interest rate on a fixed mortga...