NatWest is set to increase fixed mortgage rates by up to 0.27% from Friday 17th July, following rate rises from Barclays, Nationwide, Coventry and Virgin Money.
NatWest has become the latest lender to announce mortgage rate increases as uncertainty in financial markets affects funding costs.
The lender is set to increase fixed rates from Friday 17th July by up to 0.27%.
The move follows increases announced by Barclays, Nationwide, Coventry and Virgin Money.
L&C Mortgages said some recent increases have been larger, with Nationwide’s 2-year fixed rate for purchases rising from 4.24% to 4.59%, adding almost £40 a month to repayments.
David Hollingworth, associate director at L&C Mortgages, said: “The story for mortgage rates in recent weeks has generally been positive, as cuts to fixed rates have dragged the market in a positive direction.
“However, any borrower hoping for rate cuts to become an ongoing trend will need to rethink, as a growing number of lenders have announced impending hikes to fixed deals in the coming days.
“The resumption of hostility in the Middle East has caused further uncertainty in financial markets, as the threat of higher interest rates returns. That’s affecting lenders’ funding costs and has already resulted in several major lenders announcing that they have increased fixed rates or are about to.
“Several moves in quick succession is usually a signal that others will not be far behind. Borrowers that had been holding on in the hope of further reductions improving their rate choice may now need to hurry if they want to avoid missing out on some of the lowest rates.
“Although many increases have so far been slight, others are chunkier. For example, Nationwide’s leading 2-year fix for purchases at 4.24% has now lifted to 4.59%, an increase of 0.35% equating to an uplift in monthly payments of almost £40pm or £480 per annum.
“Things can change quickly but securing a rate now could avoid being hit with further rises while still allowing a further review of rates before completion if the situation eases back again.”