Lender increases rates of two- and five-year deals
NatWest has announced increased rates on selected mortgage products for new and existing customers, effective from Friday, February 16.
For new business, the bank will implement rate increases on specific two- and five-year mortgages, with purchase deals seeing rate hikes of up to 10 basis points (bps) and 20bps, respectively.
Remortgage rates are also set to rise, with increases of up to 15bps and 21bps on select two- and five-year deals. First-time buyers will face rate increases of up to 10bps and 11bps on select two- and five-year products.
NatWest – one of the UK’s biggest mortgage lenders – will also increase rates for Help to Buy shared equity remortgages by up to 10bps and 21bps for selected two- and five-year deals. Shared equity purchase deals are also subject to rate increases of up to 10bps and 20bps.
Furthermore, green mortgages, both for purchases and remortgages, will see rate rises of 10bps and 20bps on some two-year deals and 10bps and 21bps on selected five-year deals.
For existing customers, NatWest will adjust rates for switcher deals, with increases of up to 10bps and 5bps on certain two- and five-year products.
Commenting on the NatWest reprice, Nicholas Mendes, head of marketing at independent mortgage broker John Charcol, said that, unfortunately for borrowers, rate increases are going to be a consistent theme among high street lenders over the next few weeks.
“As much as we would all want fixed rates to continue repricing downwards, swaps just don’t allow lenders the room to be able to hold where they currently are,” Mendes stated.
“Those who acted last month to secure a deal will no doubt feel an element of relief for acting quickly and not holding out in the hope rates were going to continue repricing downward. It’s still worthwhile securing a deal and continuing to regularly review the market up until completion, or use a broker who can do this for you which would certainly be less stressful.”
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