Lender has now increased rates for a second consecutive week, with the latest round pushing some products up by as much as 0.20%
NatWest has lifted fixed rates on almost all of its new business mortgage products for the second week running, with the latest increase ranging from 0.01 to 0.20 percentage points.
The bank raised rates by up to 27 basis points (bps) the previous week, citing pressure on funding costs, and has now followed that with a further broad-based increase across residential, first-time buyer and buy-to-let (BTL) products.
The steepest rise in the latest round was to the 95% LTV five-year fixed purchase rate, which climbed by 0.20% from 5.29% to 5.49%.
Green purchase products also saw sharp increases. The 60% LTV five-year fixed green purchase rate moved from 4.46% to 4.65%, up 19bps, while the two-year fixed green remortgage rate at the same LTV tier rose from 4.6% to 4.77%, an increase of 17bps.
First-time buyer rates recorded some of the more significant movements, particularly on five-year fixed terms. The 85% LTV five-year fixed product carrying a £995 fee rose from 4.68% to 4.84%, up 16bps. The equivalent 90% LTV product increased from 4.8% to 4.92%, a rise of 12bps. The two-year fixed option at 85% LTV with a £995 fee moved more modestly, from 4.87% to 4.9%.
Across the buy-to-let range, NatWest raised rates on both green and standard products. The 75% LTV five-year fixed BTL green purchase rate rose from 4.87% to 4.94%, and the 75% LTV two-year fixed BTL green remortgage rate increased from 4.94% to 5.01%, both up 7bps. The 65% LTV two-year fixed BTL green purchase rate edged up just 0.01 percentage points, from 4.58% to 4.59%.
In the standard BTL range, the 75% LTV five-year fixed purchase rate with a £995 fee rose from 4.93% to 5%, up 7bps. The 60% LTV two-year fixed BTL remortgage rate with a £995 fee increased from 4.76% to 4.78%. The 60% LTV two-year fixed residential remortgage rate with a £995 fee saw a larger movement, rising from 4.65% to 4.82%, an increase of 17bps.
NatWest's standard variable rate (SVR) held steady at 6.74%, and product fees were left unchanged across equivalent products.
"NatWest has increased rates across its new business range, following a domino effect of similar moves from lenders this month," said Rachel Geddes (pictured right), strategic lender relationship director at Mortgage Advice Bureau. "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."
According to her, first-time buyers would feel the impact most acutely, given that higher LTV lending is the most rate-sensitive part of the market. She added that borrowers nearing the end of a fixed term should also act promptly, as most lenders allow switches to a better deal if conditions improve before completion.
Geddes also cautioned against putting homebuying plans on hold entirely. "Rates are still well below the peaks we saw earlier this year, and this year alone has shown that lenders are quick to lower rates again once things settle down," she said.
"The real risk isn't rates rising a little further - its borrowers hesitating and missing the right deal while they wait to see what happens next."
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