It is the first high street lender to hike rates across its full range for some weeks, and it comes as Barclays announced it was cutting prices.
However, experts fear other lenders may follow NatWest’s lead and borrowers may now see more prices start to creep up.
Indeed, according to the Newspage Agency, Suffolk Building Society has withdrawn all its fixed rate ‘for now’ as lenders struggle to secure funding at reasonable rates.
Justin Moy, managing director at Chelmsford-based EHF Mortgages, speaking to Newspage, said: “Inevitable news from NatWest this morning: the cost of borrowing has increased over the last week or so, not only due to the conflict but also to government unrest, which just spooks the markets even more.
“Uncertainty just drives rates higher and costs borrowers more in the long term. A blanket 0.2% increase across purchase, remortgage and BTL rates is more than enough to make a difference, and just shows that inflation is not the only factor in mortgage pricing.”
What should borrowers do?
If you are a borrower who is about to take out a mortgage or remortgage, you may be forgiven for being somewhat confused about what is happening with rates.
Indeed, NatWest hiking prices and Barclays reducing fixed rates on the same day is confusing to say the least.
As such it’s vital to seek advice from a mortgage broker to help you find the best deal for your needs. Focussing on your own homebuying or remortgaging needs, rather than guessing what lenders might do, is key.
Rachel Geddes, strategic lender relationship director at Mortgage Advice Bureau, said: “While mortgage rates are still expected to ease gradually overall, borrowers shouldn’t expect a completely straightforward downward trajectory, as pricing is likely to continue fluctuating in response to market expectations.
“For anyone planning to buy a home or remortgage this year, it’s an important reminder that mortgage rates can change quickly and with little notice.
“Reviewing options early and seeking expert mortgage advice can make all the difference when it comes to securing the most suitable deal and managing your monthly repayments.”