Effective tomorrow (13th June), NatWest Bank has announced a series of amendments to the end dates and interest rates for both its new and existing customer product ranges.
The changes include alterations to the terms for a number of their products and increases in the rates across several mortgage deal categories.
The 2-year term end dates will shift from 30th September 2025 to 31st October 2025, and the 5-year term end dates will move from 30th September 2028 to 31st October 2028, thus extending the loan periods.
In terms of new business rate changes, there will be a 0.2% increase on selected 2-year and 5-year deals for purchases, remortgages, and first-time buyer offers.
Significant rate hikes are anticipated for the shared equity purchase sector, with an increase of 0.75% on selected 2 and 5-year deals.
In the buy-to-let purchase market, rate hikes are even more pronounced, with increases of up to 1.57% and 1.22% on selected 2 and 5-year deals, respectively.
Similar changes will occur for buy-to-let remortgages, with increases of up to 1.24% and 1.14% on the selected deals.
The bank’s green purchase and remortgage products will also see an increase of up to 0.2% on selected 2 and 5-year deals, while buy-to-let green purchase and remortgage products will see rate hikes of up to 1.38% and 1.15%, and up to 1.07% and 1.1% respectively on the selected deals.
For existing customers, changes to the rates are also set to take place. Switcher products will face an increase of up to 0.35% and 0.3% on selected 2 and 5-year deals.
Tracker switchers will experience a rate rise of up to 0.55% on selected 2-year deals, and buy-to-let switcher products will face rate hikes of up to 0.42% and 0.26% on selected 2 and 5-year deals.
Reaction
Lewis Shaw, owner and mortgage broker at Riverside Mortgages:
“I’m no longer sure what level of reality I’m meant to be operating on. This could sound the death knell for buy-to-let, at least with NatWest.
“Something has clearly spooked the money markets around 2pm today, and the 2-year gilt yield has shot above its peak following the mini-Budget in September. This is extremely worrying and I don’t know where it ends.”
Riz Malik, founder & director at R3 Mortgages:
“The considerable rise in mortgage rates on buy-to-let properties underlines the flux in the market at present and introduces yet more hardship and pain for numerous landlords. With each passing day, the financial calculations seem to make less sense.
“This is a significant blow to the entire UK buy-to-let market.”
Justin Moy, managing director at EHF Mortgages:
“Natwest is increasing the rates on their schemes, such as the buy-to-let deals, green mortgages and Help to Buy.
“Some increases are as much as 1.38% on specific deals, with a more palatable but unwelcome 0.2% increase across their standard products for remortgages and purchases. When will it end?!”
Luke Thompson, director at PAB Wealth Management:
“Given these latest rates, it seems pretty obvious that NatWest doesn’t want to be in the buy-to-let mortgage arena at this point in time.
“My assumption is that they want to see where swap rates will go in the coming weeks and once they have a bit more of an idea on that front they may start to price buy-to-let products more competitively again.”
