NatWest is raising rates again for the second time in less than a week.

The lender is increasing product transfer and additional borrowing rates tomorrow after previously raising prices on Friday.

As its rates for product transfers are bespoke to individual borrowers, it has not revealed the sale of the rate rises.

John Charcol mortgage technical manager Nicholas Mendes says: “It points to another difficult week ahead, with lenders still trying to balance rising funding costs against service levels.

“With oil moving back above $116 a barrel as the conflict has intensified, inflation risk remains very much in play.

“Markets had been hoping for a softer rate path earlier in the year, but that has become much harder to justify with energy prices rising again and concerns growing over wider disruption to supply routes.

“That matters for mortgages because when oil moves like this, markets start to question whether inflation will stay higher for longer or even begin moving back up. That then feeds directly into rate expectations and swap pricing.

“The pressure on lenders is that fixed-rate mortgages are priced off future funding costs, and those costs remain both elevated and volatile.

“In that kind of environment, further selective repricing, product withdrawals, and short-notice changes look likely again this week.”

Mendes adds: “One lender move rarely stays in isolation in a market like this.

“If inflation expectations remain under pressure and swaps stay unsettled, it is likely more lenders will continue adjusting their ranges behind NatWest rather than treating this as a one-off.

“For borrowers, particularly those due to come off a fixed rate in the next six months, this is a reminder not to delay.

“Speaking to a mortgage broker early can help secure a new deal in advance where possible, while also keeping that rate under review if pricing improves before completion.”