UK homeowners are overpaying mortgages and looking to secure new rates as geopolitical and economic uncertainty weighs on housing plans, according to Barclays.
Barclays Property Insights found that 17% of UK adults said their housing plans had been affected by the conflict in the Middle East, with borrowers taking steps to protect themselves against possible interest rate and cost-of-living pressures.
The research showed that 27% of homeowners are overpaying on their mortgage to get ahead of potential future rate rises, while 20% of those remortgaging are looking to lock in a new rate as soon as possible in case of further volatility.
Barclays’ mortgage data for March showed that the share of customers borrowing for a remortgage, compared with other reasons such as a first-time purchase or home move, rose by nine percentage points year on year.
The bank said most of the remortgages completed in March would have been started before the escalation of the conflict in Iran, meaning the increase was more likely to reflect the number of borrowers rolling off five-year fixed rates taken out during the low-rate environment in 2021.
MOVERS FACE COST PRESSURES
Existing homeowners cited several factors that could delay or prevent their next move. Economic uncertainty was the most common barrier, mentioned by 29%, followed by moving fees at 28%, stamp duty at 27%, mortgage rates at 24%, and the price gap between their current home and available properties at 24%.
Barclays said 45% of working adults reported that their wages were not keeping pace with rising costs, making it harder for some households to move up the property ladder.
Its mortgage data also suggested that existing homeowners are increasingly moving towards cheaper properties and larger mortgages. The proportion of home purchases below £500,000 rose to 73.2%, up from 70.5% in March 2025.
The share of next-time buyers putting down a deposit of less than £20,000 increased to 56.7%, from 43.2% over the same period.
SECOND-STEPPERS FACE LARGER SAVINGS GAP
The research found that 41% of UK homeowners are still living in the first property they have owned.
First-time owners looking to move to their next home, or second-steppers, estimated they would need to save an average of £75,648 to fund the purchase, in addition to proceeds from selling their existing property.
That total included £41,751 for a deposit, £28,112 for stamp duty and £5,785 in third-party costs such as legal fees.
By contrast, homeowners buying their third or subsequent main residence estimated that they would need to save £52,651 on average, including £19,835 for a deposit, £26,860 for stamp duty and £5,996 in third-party costs.
Barclays said the £22,998 gap reflected the greater equity typically built up by those further along the housing ladder. Some 43% of third-steppers and beyond said they would not need to save anything 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.”
The consumer research was carried out by Opinium Research on behalf of Barclays between 2 April 2026 and 7 April 2026 among 2,000 UK consumers. Barclays’ mortgage completions data compared 26 February 2025 to 25 March 2025 with 26 February 2026 to 25 March 2026, while the remortgage data compared March 2025 with March 2026.
