Geopolitical uncertainty and cost pressures are beginning to influence UK housing behaviour, with new data from Barclays indicating a shift towards remortgaging, mortgage overpayments and delayed home moves as borrowers respond to concerns over interest rates and affordability.
According to the lender’s latest Property Insights research, 17% of UK adults say their housing plans have been affected by conflict in the Middle East. In response, some borrowers are taking steps to mitigate potential interest rate and cost-of-living pressures.
Among homeowners, 27% report overpaying on their mortgage to reduce future exposure to rate rises. A further 20% of those remortgaging say they are aiming to secure a new rate quickly amid concerns about volatility.
Barclays’ mortgage data from March shows a 9 percentage point year-on-year increase in the share of borrowing for remortgaging. However, the lender notes that most of these cases were initiated before recent geopolitical developments, and are more likely linked to borrowers coming to the end of five-year fixed-rate deals agreed in 2021.
Existing homeowners continue to cite economic conditions as a constraint on moving. Around 29% say uncertainty could delay or prevent a move, while other commonly cited barriers include moving costs (28%), stamp duty (27%), mortgage rates (24%) and the price gap between properties (24%).
Income pressure remains a factor, with 45% of working adults reporting that wages are not keeping pace with rising costs.
Transaction data suggests a shift in buyer behaviour. The proportion of purchases below £500,000 increased to 73.2% year-on-year, while the share of next-time buyers putting down deposits of less than £20,000 rose to 56.7%, up from 43.2% a year earlier.
Barclays’ consumer research highlights the financial gap between different stages of the housing ladder. First-time owners looking to move — commonly referred to as second-steppers – estimate needing £75,648 on average in additional funds beyond sale proceeds.
This includes £41,751 for a deposit, £28,112 in stamp duty, and £5,785 in associated costs such as legal fees.
By comparison, those purchasing their third or subsequent home estimate needing £52,651 on average. The lower figure reflects higher levels of equity, with 43% of this group reporting no need to save for a deposit.
Jatin Patel, head of mortgages, savings and insurance at Barclays, said: “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.
“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.”
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