Borrowers urged to “batten down the hatches” as NatWest hikes rates by up to 0.3%

"NatWest going north on rates should be noted by borrowers. This is a big lender making the cost of borrowing more expensive and will almost certainly see other lenders follow suit. If you're looking to buy or remortgage, lock into a rate as soon as you can. The Autumn Budget and the spectre of inflation due to the crisis in the Middle East are starting to feed through into markets. Borrower beware."

"The rollercoaster continues with Santander and NatWest both putting rates up on Tuesday, following on from some smaller lenders at the tail-end of last week. Inter-bank swap rates increasing could cause more wobbles from other banks and we need to hold on tight to see what the next fortnight or so brings in the run-up to the Budget. The banks are in a strange place, trying to meet lending targets for the year but also not getting caught out giving cheap money or taking too much business and letting service standards slip. This goes to show how quickly markets can turn. Borrowers should never assume the status quo will continue."

"Batten down the hatches as the rate storm starts to rage. It is no surprise that a big lender has started increasing rates, with the cost of lending rising not just for mortgage customers but for the banks as well. Given what's happening in the markets, this was unavoidable. There will be no choice but for the others to join as soon as their current funds run out. Ongoing leaks as to what the new goverment will be setting out in the Budget have only fuelled concern over the direction the market may now be heading. Let's hope this is just a bump in the road and we get back on track with the recovery we all want and need."

"These were inevitable increases given how Swap rates have increased over the past couple of weeks. Expectations of how the market will react to the 'painful' Labour Budget that is looming, coupled with nervousness around world oil prices increasing, makes for a tough narrative at the moment, and shows how sensitive our economy has become. Borrowers need to work swiftly and secure deals as soon as possible, just in case this trend becomes longer than originally planned. Just when borrowers we're on a roll, they have been rolled over."

"In a blow to borrowers, NatWest have made some sizeable increases to their mortgage rates. Being one of the first mainstream lenders to do so, we could now see others follow suit. We have had a sustained period of rate reductions so this should serve as a wake-up call to to borrowers. They need to snap up attractive rates before they disappear onto the horizon. Lock in or look out."