Some lenders have pushed pause on planned mortgage rate cuts, according to a financial information website, amid wider economic and global uncertainties as the conflict in the Middle East unfolds.
Moneyfacts said swap rates, which are used by lenders to price mortgages, have been rising in recent days.
The website said it was aware that some lenders, which it did not name, had already reconsidered planned rate reductions.
Despite some lenders pausing plans to reduce rates further, figures from Moneyfacts indicated some mortgage rates were still heading in a general downward direction on Wednesday.
The average two-year fixed-rate homeowner mortgage rate on the market on Wednesday morning was 4.82%, down from 4.83% on Tuesday.
The average five-year fixed-rate homeowner mortgage rate on the market on Wednesday morning was 4.94%, falling slightly from 4.95% on Tuesday.
In the buy-to-let mortgage market, some average rates edged up.
The average two-year buy-to-let residential mortgage rate on Wednesday was 4.65%, up from 4.64% on Tuesday.
The average five-year buy-to-let residential mortgage rate on Wednesday was 5.05%, up from 5.04% on Tuesday.
Adam French, head of consumer finance at Moneyfacts, said: “Swap rates have been rising sharply as conflict with Iran spreads across the Middle East, driving oil and gas prices higher and reigniting inflation concerns.
“The immediate consequence has been higher gilt yields and a rapid shift in interest rate expectations, with the prospect of a Bank of England base rate cut later this month now looking far less certain.
“For the mortgage market, the impact is almost instantaneous. 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.”
Read MoreGold price rises again as Middle East conflict revives safe-haven bid
Oil surges after Iran strikes – what does it mean for petrol prices and your money?
Poll: Are you worried the Iran conflict will push up your cost of living?
Budget watchdog downgrades growth forecast for 2026 as Reeves defends plan
Panic as South Korea’s stock index plunges by 12% – the steepest drop in history
