Before the war began, there had been a hope and expectation of a steady fall in the interest rates charged on new, fixed mortgages, as well as lower variable rates.
Now, the opposite is happening.
Some of the UK’s biggest lenders have raised rates, owing to their own funding costs rising and an expectation that the base borrowing rate will not fall as previously anticipated.
Mortgage rate rises for homeowners getting a new two or five-year deal, or renewing one, have gone up but not shot up, so far.
However, there is talk of “painful” rises to come for borrowers, particularly those shopping for shorter-term deals.
The average rate on a two-year deal has risen to 4.87%, and the average five-year fix is up to 4.98%, as of 9 March, according to the financial information service Moneyfacts.
The last time both were above 5% was in August last year.
At times of economic uncertainty, lenders may pull mortgage products off the shelves, reducing choice.
A couple of lenders have already withdrawn their entire range, with the expectation of repricing them at a higher level.
“When lenders take the step of pulling deals rather than simply tweaking pricing, it often indicates that funding costs have moved too quickly for incremental changes to keep pace,” said Adam French, head of consumer finance at Moneyfacts.