Mortgage rates are set to climb as several lenders signal increases, with others expected to follow amid shifting market conditions.
HSBC UK will raise some of its offerings from Friday, affecting first-time buyers, home movers, re-mortgagers, and buy-to-let landlords.
Coventry Building Society is also poised to increase its rates from Monday.
These adjustments stem from rising swap rates, which lenders use to price mortgages.
A statement from Coventry Building Society said: “Mortgage pricing is closely linked to swap rates, and as these have moved in recent days we’ve had to adjust some of our mortgage rates too.
“While our rates will be increasing, we remain committed to offering competitive options to people looking for a new mortgage deal.”
David Hollingworth, associate director at L&C Mortgages said: “We are now seeing the first big name lender moves begin to feed through.”
He added: “The conflict in the Middle East has led to market expectation of higher inflationary pressure causing rate cuts to be slowed or put on hold. That pushes up the cost for lenders when pricing their fixed-rate mortgages, which can force rates higher.
“Once we enter this cycle of lenders adjusting their rates, we know that it almost invariably results in others following suit.
“The current uncertainty means that this upward pressure doesn’t look likely to ease quickly, although there are signs that the market reaction is at least levelling off for now.
“In the short term it’s likely that these increases will not see mortgage costs rocket but it does look like the improvements made in recent weeks could unwind quickly.
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“With such an unpredictable backdrop those borrowers that are considering a new fixed-rate deal at the moment should be looking to secure the rate sooner rather than later.”
Financial information website Moneyfacts said on Thursday morning that average two and five-year fixed homeowner mortgage rates on the market had edged up compared with the previous day.
The average two-year fixed-rate homeowner mortgage rate on Thursday morning was 4.83%, up from 4.82% on Wednesday.
The average five-year fixed-rate homeowner mortgage rate on Thursday morning was 4.95%, up from 4.94% on Wednesday.
On Wednesday, Moneyfacts said some lenders had already pushed pause on planned mortgage rate cuts, amid wider economic and global uncertainties as the conflict in the Middle East unfolds.
The website said it was aware that some lenders, which it did not name, had already reconsidered planned rate reductions.
Adam French, head of consumer finance at Moneyfacts, said previously: “Some lenders have already paused or reconsidered planned rate reductions.
“Because fixed mortgage pricing is closely linked to swap rates, this sudden market movement risks halting the recent momentum towards lower mortgage rates just as borrower confidence had begun to build ahead of an anticipated rate cut.
“It serves as a stark reminder that mortgage costs are not driven solely by domestic policy decisions.
“Global geopolitical events move markets, markets move swap rates, and swap rates ultimately shape the deals available to borrowers – all while the world watches deeply troubling events unfold.”
Nicholas Mendes, mortgage technical manager at John Charcol said: “From a mortgage perspective the key thing for borrowers right now is that periods of geopolitical tension tend to feed quickly into financial markets.
“We’ve already seen that with swap rates moving as markets reassess inflation risks and the likely path of Bank of England interest rates.
“Those swaps underpin fixed mortgage pricing, so when they move it can influence the direction of mortgage rates.”
He added: “Periods of market volatility can lead to lenders adjusting pricing quickly, so borrowers who are approaching a purchase or remortgage may want to keep a close eye on rates.
“Securing a rate early can provide a degree of protection because most lenders allow borrowers to switch to a lower rate before completion if pricing improves.
“That flexibility means many borrowers choose to lock something in while keeping their options open.”