These adjustments stem from rising swap rates, which lenders use to price mortgages

Mortgage rates are set to jump as several lenders signal hikes, 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 raise 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, it said.

David Hollingworth, associate director at L&C Mortgages said: We are now seeing the first big name lender moves begin to feed through.

He said: 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, he said.

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, he further said.

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, he said. 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.