Barclays and NatWest lift mortgage rates as UK lenders scramble amid swap market volatility

In reaction to recent spikes in swap rates, Barclays announced a rise in its two-year fixed-rate mortgage from 4.55% to 4.75% for borrowers with a 40% deposit, adding an £899 arrangement fee, and NatWest followed with comparable changes. This follows a series of rate increases across all of the UK’s big-six mortgage lenders, some of which have repriced multiple times within a week. Mortgage brokers describe the week as “dark” for borrowers and caution those nearing the end of fixed deals against delaying.

Industry commentators link the swift adjustments to heightened funding costs from volatile financial markets, war-related oil price shocks and broader inflation pressures. They advise potential buyers and those with expiring deals to lock in rates promptly or seek broker advice, as further hikes are expected. The Bank of England’s upcoming decision is unlikely to halt the trend, leaving affordability under pressure.