At the same time, some 1,500 mortgage products have been withdrawn since the start of the conflict, while average borrowing costs have risen to their highest level in over a year at 5.75pc, according to Moneyfacts.
This is in stark contrast to January, when some lenders were offering two-year fixed deals as low as 3.5pc.
With interest rates falling and the cloud of Budget uncertainty finally clearing, optimism about the health of Britain’s property market was on the up.
The number of property sales between January and February grew 6pc, according to the latest HMRC figures, and everyone from conveyancers to mortgage brokers and estate agents was anticipating another bump in the spring.
However, the outbreak of war in the Middle East at the end of February turned most of the positive sentiment on its head.
One seller, who asked to remain anonymous, told Telegraph Money that since the start of the Iran conflict, three first-time buyers had abandoned purchasing their property despite having offers accepted, putting their entire sale at risk.
They said: “Things are changing quickly and a mortgage in principle from one month ago means very little now.
“We had feedback from one person who pulled out that their monthly payments had gone up by around £400 a month since their mortgage in principle [was offered].
“This is holding up our chain and causing frustrations to the point we are negotiating the offers as the agreed prices no longer reflect the current market price.”
They added that the most likely outcome was they would withdraw their home from the market and wait for things to stabilise.
