Mortgage lenders are already re-pricing their products upwards in anticipation of a longer Middle East war and no Bank of England base rate cut this month.

Some lenders cancelled planned rate cuts last week while others – notably Gen H, HSBC, Nationwide, Santander, West One and Coventry Building Society – have announced selected fixed rate increases.

Meanwhile the average two-year fixed residential mortgage rate has risen from 4.82% on Wednesday to 4.84% by the weekend.

The average five-year fix has risen from 4.94% to 4.96% over the same period.

Swap Rates, which of course have a big influence on fixed rate mortgage costs, have been volatile since the conflict began.

By the weekend 2-year swap rates had risen from 3.33% on Friday February 27 to reach 3.65%.

And 5-year swap rates had risen from 3.50% to 3.80% over the same period.

Adam French, of Moneyfacts says: “The Bank of England is likely to resist any temptation to cut the Base Rate for now and instead hold steady until the economic effects become clearer.

“The risk of adding fuel to what may prove to be a fresh inflationary spike far outweighs any benefit a rate cut could bring.

“The long-term damage caused by inflation is far worse than a delay to rate cuts. Inflation compounds quietly but relentlessly.

“Something that cost £100 in 2020 will cost around £128 today, for example, steadily eroding living standards and household spending power.

“Previous Moneyfacts analysis has found the typical cash saver has been left out of pocket to the tune of 11p for every £1 saved, in real spending power terms, since 2020.

“That experience should make policymakers cautious.

“Base Rate policy works best when it remains firmly focused on the objective of taming inflation. Holding steady until the outlook is clearer will help avoid repeating the mistakes that have left British households still absorbing the cost of higher prices.”