NatWest will increase residential fixed rates from 17 July by up to 17bps, in reaction to rising swap rates.

The lender is the latest big bank to increase rates this week, with Nationwide and Virgin Money also hiking mortgage rates from 16 July, with fixed-rate deals rising by as much as 35bps.

Meanwhile Barclays is increasing residential rates by up to 34bps today, while Coventry Building Society and Gen H are also raising prices.

L&C Mortgages associate director David Hollingworth 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.

“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.

“Although many increases have so far been slight, others are chunkier.  For example, Nationwide’s leading two-year fix for purchases at 4.24% has now lifted to 4.59%, an increase of 35bps equating to an uplift in monthly payments of almost £40pm or £480 per annum.”