NatWest’s new business rates rise for second consecutive week
NatWest has increased fixed rates across almost all of its new business mortgage products, with rises ranging from 0.01 percentage points to 0.2 percentage points since last week.
The largest single rise was to the 95% loan-to-value (LTV) five-year fixed purchase rate, which increased from 5.29% to 5.49%, a rise of 0.2 percentage points.
Green purchase rates also saw some of the steepest increases. The 60% LTV five-year fixed green purchase rate rose from 4.46% to 4.65%, up 0.19 percentage points, while the equivalent two-year fixed green remortgage rate rose from 4.6% to 4.77%, up 0.17 percentage points.
First-time buyer rates move higher
First-time buyer products also recorded notable increases, particularly among five-year fixed rates.
The 85% LTV five-year fixed first-time buyer rate with a £995 fee rose from 4.68% to 4.84%, an increase of 0.16 percentage points.
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The 90% LTV five-year fixed first-time buyer rate with a £995 fee rose from 4.8% to 4.92%, up 0.12 percentage points. The 85% LTV two-year fixed first-time buyer rate with a £995 fee increased more modestly, from 4.87% to 4.9%.
BTL rates rise across green and standard ranges
NatWest also increased rates across its buy-to-let (BTL) range. The 75% LTV five-year fixed BTL green purchase rate rose from 4.87% to 4.94%, while the 75% LTV two-year fixed BTL green remortgage rate increased from 4.94% to 5.01%. Both were up 0.07 percentage points.
The 65% LTV two-year fixed BTL green purchase rate rose slightly, from 4.58% to 4.59%, an increase of 0.01 percentage points.
Standard BTL and remortgage pricing increases
In the standard BTL range, the 75% LTV five-year fixed BTL purchase rate with a £995 fee rose from 4.93% to 5%, up 0.07 percentage points.
The 60% LTV two-year fixed BTL remortgage rate with a £995 fee increased from 4.76% to 4.78%, up 0.02 percentage points. Separately, the 60% LTV two-year fixed residential remortgage rate with a £995 fee rose from 4.65% to 4.82%, an increase of 0.17 percentage points.
Fees unchanged as SVR holds steady
NatWest’s standard variable rate (SVR) remained unchanged at 6.74%. Product fees were also unchanged for equivalent products, indicating the latest changes were driven by pricing adjustments rather than fee increases.
Rachel Geddes, strategic lender relationship director at Mortgage Advice Bureau (MAB), said: “NatWest has increased rates across its new business range, following a domino effect of similar moves from lenders this month. However, swap rates are the trigger, not the Bank of England base rate. Renewed geopolitical uncertainty has pushed swaps back up, and lenders price their fixed deals directly off them.
“First time buyers will feel this most keenly. Higher-LTV lending is the most rate-sensitive corner of the market, so getting a deal locked in now should be your priority. The same urgency applies to remortgagors who are coming to the end of their fixed term, as most lenders will still let you switch to something better if the market improves before completion. Homemovers with equity built up in their current place have a bit more of a cushion, but it’s still worth checking what you can actually borrow before you start seriously house hunting.”
