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Natwest increases mortgage rates by more than one per cent
Guest Author:
Shekina TuaheneThe lender has also reduced the cashback incentive offered to first-time buyers from £1,000 to £250
Natwest has increased the pricing on its mortgage rates for new and existing borrowers by as much as 1.78 percentage points.
The product to see the largest increase was the two-year fixed buy-to-let purchase mortgage at 60 per cent loan to value (LTV) and a £995 fee for new borrowers. This is now priced at 5.72 per cent, up from 4.09 per cent.
Other changes to two-year fixes for buy-to-let borrowers apply to deals at 60 and 75 per cent LTV, for purchase and remortgage, with either no fee, a £995 fee or a £1,495 fee.
Rates begin at 5.67 per cent for a 60 or 75 per cent LTV deal with a £1,495 fee, up to 5.95 per cent for fee-free deals.
Across five-year fixes for the same borrower type, rates have risen by as much as 132 basis points (bps) up to 85 per cent LTV.
Green buy-to-let mortgages have gone up by up to 168bps and apply to two and five-year fixes at 65 and 75 per cent LTV.
Other pricing changes for new borrowers apply to two and five-year fixed purchase and remortgage products between 60 and 90 per cent LTV. Rates have risen by as much as 146bps, with this increase being applied to the two-year fixed remortgage at 80 per cent LTV and a £995 fee, now priced at 5.79 per cent.
Shared equity, mortgage guarantee, and rate switcher mortgages have also seen an increase in pricing.
Cashback cut
For first-time buyers, rate increases of up to 152bps have been made to two and five-year fixes up to 90 per cent LTV.
Additionally, Natwest has reduced the cashback incentive offered to first-time buyers from £1,000 to £250.
Stress rate change
Natwest has increased the stress rate applied to buy-to-let mortgages in its pricing update.
Now, the stress rate for two-year products is 7.83 per cent, up from 5.5 per cent. The stress rate for like-for-like remortgages and five-year mortgages is 7.44 per cent, up from 5.1 per cent.