London, March 30, 2026, 17:12 BST
NatWest Group plans to bump up mortgage rates again from March 31, covering new business, existing customers, and extra borrowing ranges—just days after its last adjustment landed on March 26. Most purchase and remortgage products are set for a 28 basis-point increase, or 0.28 percentage point, the bank’s intermediary site shows.
It’s a tough moment for both NatWest and borrowers. Fresh numbers from the Bank of England on Monday put mortgage approvals at 62,584 for February—that’s a three-month high, pointing to a pick-up in housing demand just before funding costs surged in March and squeezed lenders.
Ministers are scrambling to keep the recovery on track. Last week, Chancellor Rachel Reeves sat down with NatWest and other big lenders, securing a commitment: banks will reach out to 1.6 million customers whose fixed-rate mortgages end this year, with support details outlined under the Mortgage Charter.
NatWest is leaving a short window for borrowers to lock in old rates: applications on previous pricing get accepted up to 11:59 p.m. Monday. After that cutoff, the fee-free two-year fixed purchase at 60% loan-to-value edges up to 5.02%, up from 4.74%. The 95% loan-to-value equivalent will move to 5.78% from 5.50%. For remortgages, the fee-free two-year fixed at 60% loan-to-value climbs to 5.16%, previously 4.88%.
The trend’s been clear across the sector. Since early March, Barclays, HSBC, and Santander have all bumped up rates, according to Moneyfacts. Rachel Springall at Moneyfactscompare described the disappearance of sub-4% fixed mortgage offers as a “cautious decision,” linking the shift to rising swap rates — the key yardstick for pricing fixed-rate loans. Moneyfacts Group
Adam French, who leads consumer finance at Moneyfactscompare, flagged that the average mortgage rate climbed to 5.50% on March 25, marking the highest level seen since August 2024. “A more volatile world is a more expensive world,” he cautioned. According to Moneyfacts, someone borrowing £250,000 over 25 years is now looking at upwards of £1,075 extra each year than they would have paid at the start of March. Moneyfacts Group
Some economists flagged that the Bank of England’s data on Monday may already be out of date. Matt Swannell from EY ITEM Club pointed out that February’s figures mainly captured a rebound from earlier softness. Capital Economics’ Paul Dales, even as he trimmed his 2026 house price growth outlook, argued the inflation spike tied to energy costs would likely prove “short-lived than long-lasting.” Reuters
The path ahead is murky. Persistent high oil and mounting funding costs could force NatWest and peers to reprice once more, or even pull more offerings off the table. On the other hand, if the geopolitical jolt subsides in short order, some of the heat from March might ease. Since the conflict started, more than 21% of UK residential mortgage products have already vanished, Reuters reported last week.
