Effective from tomorrow, Tuesday 30th April, NatWest is set to make changes to its new business product range.
These changes include the introduction of new high value products for customers looking to purchase and remortgage, with both 2-year and 5-year options available with a minimum loan size of £2m.
The lender is also set to make a number of rate increases across its entire new business range.
For new purchasers, there will be rate increases of up to 0.21% and 0.18% on both 2- and 5-year deals, respectively.
For remortgagers, rates will be increased by 0.22% and 0.21% on 2- and 5-year deals, while first-time buyers will see increases of up to 0.22% and 0.21%.
Products across the lender’s Shared Equity, Help to Buy Shared Equity remortgage, buy-to-let and green ranges will also see a number of rate increases.
Reaction:
Justin Moy, managing director at EHF Mortgages:
“As expected, another high street lender pushing the cost of borrowing up following the lead from Santander.
“With the likelihood of base rate cuts becoming less likely in 2024, longer-term swap rates have continued to increase over the past few weeks, lenders have had little choice other than to follow.
“Where will this stop? Low inflation and a general election don’t seem enough to make a difference.”
Ben Perks, managing director at Orchard Financial Advisers:
“Natwest are the latest lender to shuffle products and make increases.
“They have shown a bit of innovation and intent to lend on the chunky high value mortgages, but this will do very little to help your every day mortgage borrower.”
Gary Bush, financial adviser at MortgageShop.com:
“May Day looks to be nothing to dance around the maypole about as the major high street lenders jump in this week with chunky mortgage rate increases across a variety of schemes – household budgets being under control doesn’t seem likely in the short term sadly.
“Hang onto your hats homeowners the bumpy ride continues.”
Dariusz Karpowicz, director at Albion Financial Advice:
“It’s another hit from the market, this time from NatWest, with rate increases up to 0.22%.
“While they’re expanding their high-value mortgage options, realistically, these changes will have minimal impact on the broader market.
“The perks, such as free legal fees for loans of £2m or more, aren’t substantial enough to sway the majority.
“This approach seems tailored for a very niche segment, unlikely to influence the overall mortgage landscape significantly.”
Amit Patel, adviser at Trinity Finance:
“Two of the biggest mortgage lenders announcing rate hikes is not a great start to the week.
“This is not good news for borrowers.”
Nicholas Mendes, head of marketing at John Charcol:
“An inevitable move from NatWest following the market movement and competitor repricing last week in which most high street lenders increased 2- and 5-year fixed rates.
“This latest reprice, I expect, will put pressure on Nationwide to make similar moves this week to avoid being market leaders and avoid impact to their service levels.
“Given the nature of the market, those who may be hesitant to commit to a deal should continue to reach out to a broker and discuss options.
“While we anticipate a reduction in fixed rates, the timeline for this adjustment may be somewhat longer than initially expected.
“It is important to note that, even if you secure a deal, there is still flexibility to make changes close to completion should a more favourable offer become available.”
