In response to the ongoing crisis in the Middle East, HSBC and Coventry Building Society have become the first major lenders in the UK to raise their rates on fixed mortgage deals. Brokers forecast that this move is just the beginning, as they anticipate that additional lenders will soon follow suit. This decision comes amidst concerns that the geopolitical unrest could have a cascading effect on energy prices and subsequently UK inflation.

Experts warn that the war's implications might lead to a shock in energy prices, which could contribute to rising inflation within the UK. This situation could prompt the Bank of England to consider increasing interest rates in response. The uncertainty surrounding these developments has also adversely impacted money market swap rates, a critical factor that lenders rely on when setting the rates of new fixed mortgage products, further complicating the financial landscape for borrowers.

Aaron Strutt, a broker at Trinity Financial, highlights the urgency for prospective borrowers to secure favorable mortgage deals swiftly, given the likelihood of more rate adjustments in the near future. HSBC has indicated that it will particularly raise rates on various residential and buy-to-let mortgage products, making it essential for those looking to remortgage or enter the property market to act promptly before conditions worsen.