NatWest raises mortgage rates in line with its rivals

Lender also takes unusual move of issuing notice to brokers on Sunday, saying it was increasing its rates

The government-backed lender NatWest has become the last big bank to raise interest rates on its mortgage products after last week's market turmoil, dashing homeowners' hopes of securing loans with rates lower than 4%.

In an unusual move for a high street lender, NatWest issued a notice to brokers on Sunday morning, saying it was increasing rates on a swathe of mortgages following a surge in demand.