NatWest has announced a 0.2% increase in mortgage rates across its full range of products, including purchase, remortgage, and buy-to-let options, effective from May 21. This decision comes despite a drop in the inflation rate from 3.3% to 2.8% in April, highlighting the impact of ongoing geopolitical tensions, particularly the conflict in Iran, and political instability in the UK. Brokers have expressed concerns that this move may lead other lenders to follow suit, as evidenced by Suffolk Building Society's withdrawal of all fixed-rate mortgages due to difficulties in securing funds at reasonable rates. Justin Moy, Managing Director at EHF Mortgages, noted that the rising costs of borrowing are driven by uncertainty in the market, which can affect borrowers in the long term. Mortgage broker Martin Rayner emphasized the importance of fixed rates for stability, advising borrowers to avoid chasing the lowest rates that may expose them to future hikes. As the market evolves, borrowers are encouraged to consider their options carefully.