Effective from tomorrow, Tuesday 12th March, NatWest is set to make changes to selected rates across its existing customer product range.
For existing customers switching rates, the lender is increasing 2 and 5-year deals by up to 0.10%.
In addition, its buy-to-let switching for existing customers will see a rate increases of 0.05% on its 75% loan-to-value (LTV) 2-year deal with £995 product fee.
NatWest is also set to alter a number of its product end dates, with its 2-year term end dates moving from 30th June 2026 to 31st July 2026, and its 5-year term end dates moving from 30th June 2029 to 31st July 2029.
To secure existing deals, the lender has urged brokers to submit applications before 11pm this evening, Monday 11th March.
Reaction:
Gary Bush, financial adviser at MortgageShop.com:
“NatWest increasing mortgage rates for its existing borrowers at a time when the industry and market mood music is improving shows a lack of consideration by this lender for its cash-strapped customers.
“Due to new affordability calculations, many of NatWest’s existing customers will be unable to switch to other lenders, so this is not a good look.
“Lenders have a captive audience due to affordability reasons but that doesn’t mean they should profit from it.”
Darryl Dhoffer, adviser at The Mortgage Expert:
“NatWest joins the recent trend of lenders raising rates for existing borrowers.
“This comes despite a decrease in gilt rates and an expectation of falling swap rates in the coming weeks, following the stable and uneventful Budget.
“Ideally, declining swap rates should lead to lower mortgage rates from lenders in the near future.
“The key question is how quickly lenders will react to these falling rates.
“In the past, lenders have been swift to raise rates when swap rates increase.
“We can only hope they will be equally responsive when rates fall.”
Robert Timm, managing director at Sunland Mortgages:
“Only a small increase but a frustrating one given the market reaction to the Budget last week,
“Gilts rates have fallen and there’s a hope swaps will follow suit, so to see an increase to start the week is like putting orange juice on your cornflakes.”
Justin Moy, managing director at EHF Mortgages:
“This is the second time this month that NatWest has increased rates for their existing clients.
“Admittedly, it’s not by a huge amount this time but collectively up to 0.2% this month.
“With swap rates tipping down over the last few days, it seems an odd announcement. It certainly doesn’t hand much loyalty to existing borrowers.”
Akhil Mair, director at Our Mortgage Broker:
“It’s not surprising news given the current state of the world economy and political unrest, but at least NatWest is now providing 24 hours’ notice before making changes to its rates.
“It’s a step towards transparency in the banking sector, albeit small.”
Peter Stamford, mortgage expert at Stamford Home Finance:
“NatWest: that’s not how you start a week. Although it is preferable to last thing on a Friday like we get most weeks from other lenders.”
Elliott Culley, director at Switch Mortgage Finance:
“After a steady Budget and a positive market reaction, it is a surprise to see an increase from NatWest.
“There is a usually a lag between changes in the market and rate changes, so provided the positive outlook for the market continues I would expect these rate increases to be temporary.”
Gareth Davies, director at South Coast Mortgage Services:
“Existing customers are getting hit regardless of the fact markets have improved in the past few days, and many are anticipating that to continue.
“You can’t blame service levels on this one either as NatWest’s product transfer process is autonomous. Strange one to start the week.”
