NatWest raises five-year fix rate

NatWest Intermediary Solutions last week increased the rate on its five-year fixed-rate mortgage to help stem demand.

The 60 per cent LTV product went from 2.95 to 3.09 per cent, an increase of 14 basis points.

The lender had originally launched the product, which has a £2,495 arrangement fee, on 30 July, after both HSBC and Santander launched direct-only five-year deals at 2.99 per cent up to 60 per cent LTV.

Brokers had until 10.30pm last Tuesday to produce KFIs and submit applications online for the existing deals. The lender also withdrew its three two-year trackers.

A spokesman said: “It has been a popular product and you have to balance the mix of business you receive as a lender in order to maintain service standards.”