HSBC has announced hikes, effective tomorrow, across its residential and buy-to-let mortgages.

The bank did not reveal the scale of reductions it will be making tomorrow, but listed a wide range of products that will see price cuts.

These include residential first-time buyer, movers, remortgage and energy efficient home deals.

Buy-to-let rates for remortgage, purchase, international and energy efficient homes will also see reductions.

The lender will be lowering prices on international residential and buy-to-let products as well.

Coventry for intermediaries has announced rates increases will take effect from Monday 8 March.

The mutual will be making increases to all residential fixed rates for new and existing borrowers as well as extending all end dates.

Coventry for intermediaries will also be putting its fixed prices up for new and existing BTL and limited company BTL borrowers as well as extending all end dates.

Trinity Financial product and communications director Aaron Strutt says: “HSBC and Coventry are the first big lenders to announce rate hikes based on the funding cost increases brought on by the chaos in the Middle East.”

“It seems almost certain we are going to see a lot more rate changes over the coming days so if you are on the hunt for a mortgage, it is worth locking into a new deal now.”

“There is a huge number of remortgages due this year and most borrowers can switch rates up to four months before their fixed rates expire. Delaying a decision to select a new deal could be costly especially if you have a larger mortgage loan.”

Meanwhile, L&C Mortgages associate director David Hollingworth adds: “We are now seeing the first big name lender moves begin to feed through. HSBC has this morning announced that its rates will be increasing tomorrow. Coventry has also given notice to the market that fixed rates will be hiked with effect from Monday.”

“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.”

“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.”

On Tuesday, Gen H made rate increases by up to 25 basis points after gilt yields increased overnight due to the Iran conflict.

Several mortgage lenders also due to make rate cuts on Tuesday started carrying out emergency repricing.