NatWest the latest lender to hike residential rates

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NatWest will raise rates by up to 0.9 per cent on many of its two- and five-year fixed rate purchase mortgages and remortgages tomorrow.

It will also be reducing cashback amounts on a number of deals.

NatWest head of sales Mark Bullard says the rate rises are due to a rise in swap rates leading to an increased cost of funding.

He adds: “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 increases include 0.10 per cent rises to the lender’s first-time buyer two-year fixed rate purchase loans at 80 per cent LTV, now 2.41 per cent.

The lender is also cutting cashback from £500 to £250 on the loan.

NatWest’s rate rises also include its Help to Buy five-year fixed rate purchase mortgage at 75 per cent LTV.

This will be 0.10 per cent more expensive, at 3.49 per cent.

A rate rise of 0.16 per cent will apply to NatWest’s two-year fixed rate purchase loan at 60 per cent LTV, now 1.35 per cent. Cashback has fallen from £350 to £250.

NatWest is raising rates by 0.9 per cent on its five-year fixed rate remortgage product at 85 per cent LTV, now 3.28 per cent with a £995 fee.

The firm is increasing rates by 0.78 per cent on its five-year remortgage at 75 per cent LTV, now 2.88 per cent with a £995 fee.

The lender is reducing rates by 0.09 per cent on its buy-to-let mortgage at 60 per cent LTV. The loan is now 2.50 per cent with a £995 fee.

 

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