Major lenders are raising mortgage rates as higher swap rates put pressure on pricing margins, with HSBC and NatWest among the biggest banks to increase rates since the start of September, Moneyfactscompare has warned.

More lenders are expected to reprice fixed-rate mortgages in the coming days as swap rates remain well above levels seen a month ago. However, the pace of withdrawals has so far been limited, with only a small number of lenders, including Family Building Society, temporarily removing fixed-rate products.

A 0.25% increase on a typical two-year fixed mortgage from 5.63% to 5.88% would add around £38 a month, or £456 a year, to repayments on a £250,000 mortgage over 25 years, according to the comparison website.

Rachel Springall, finance expert at Moneyfactscompare, said the recent volatility in swap rates had made rate increases “somewhat inevitable”, noting that higher wholesale funding costs were filtering through to fixed mortgage pricing.

Springall said: “Borrowers expecting mortgages rates to drop in the coming weeks have had their hopes dashed. The prolonged conflict increases the chances for the Monetary Policy Committee to vote for an increase to the Bank of England Base Rate (BBR). However, this might not happen until November, according to economists. Regardless of any changes to BBR, it is still essential borrowers do not delay seeking advice to navigate the mortgage maze."

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