NatWest increases residential rates by up to 90bps

NatWest increases residential rates by up to 90bps
Swap rates have risen recently, on the expectation that interest rates will begin to rise in the near future, which has increased the cost of funding.

NatWest has increased rates across several of its two and five-year fixed rate purchase mortgages and remortgages in its core range.

The Bank said that swap rates have now risen on the expectation that interest rates will begin to rise in the near future, which has increased the cost of funding.

Five-year fixed rate remortgage products have seen the biggest increases, with 85% LTV rates increasing by 90bps from 2.38% to 3.28%. Other products in the range have seen rate increases between 40-78bps.


Two and five-year purchase rates, including first-time buyer and shared equity products, have increased by up to 16bps.

NatWest will also be reducing cashback amounts to £250 on a number of deals.

Mark Bullard, Head of Sales, commented: “Having reviewed our product portfolio in line with the prevailing market conditions, we are introducing changes to our mortgage rates that include a number of rate increases on our residential deals and a rate reduction for a buy-to-let purchase mortgage.  Swap rates have risen recently, on the expectation that interest rates will begin to rise in the near future, which has increased the cost of funding.

“We continue to maintain a strong appetite for buy-to-let business and have reduced rates on a number of our broker-exclusive deals. The changes we introduced last week to our buy-to-let proposition and the further enhancements we have planned for later this year, underlines this commitment.”

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