NatWest will increase its residential fixed rate by up to 17 basis points from July 17, in response to rising swap rates.
The lender is the latest major bank to raise interest rates this week. Nationwide and Virgin Money are also increasing mortgage rates from July 16, with fixed rates rising by as much as 35 basis points.
Meanwhile, Barclays is increasing house rates by up to 34 basis points today, while Coventry Building Society and Gen H are also increasing prices.
L&C Mortgages deputy managing director David Hollingworth said: “The mortgage rate story in recent weeks has been broadly positive as fixed rate cuts have pulled the market in a positive direction.
“The resumption of hostility in the Middle East has created further uncertainty in financial markets as the threat of higher interest rates returns. That is impacting lenders’ funding costs and has already led to several major lenders announcing that they have raised fixed rates or are about to do so.
“While many increases to date have been small, others have been more significant. For example, Nationwide’s leading two-year purchase fix of 4.24% has now risen to 4.59%, an increase of 35 basis points, equating to an increase in monthly payments of almost £40pm or £480 per year.”