Britain's major lenders are raising mortgage rates amid Middle East conflict concerns, with NatWest, HSBC, and Skipton announcing increases this week. The moves follow similar actions by Nationwide, Santander, and Coventry Building Society, as swap rates jumped to 3.65 per cent from 3.33 per cent a week ago.

Brokers report a dramatic shift in market sentiment, with clients rushing to lock in deals before further increases. Adrian Anderson of Anderson Harris noted clients who had been waiting for lower rates are now urgently remortgaging, with many switching from tracker to fixed-rate loans. Some are even extending terms from two to five years.

House prices rose 0.3 per cent in February according to Halifax, but economists warn this trend may not continue. Ashley Webb of Capital Economics cautioned that unresolved Middle East conflict could lead to fewer interest rate cuts and softer buyer sentiment. Estate agents report clients already pressing pause on transactions.