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NatWest hikes rates by up to 24bps

ended 05. February 2026

Ahead of tomorrow's Bank of England rate decision, NatWest this evening announced that, from Friday 6th February, it is making rate increases of up to 24bps across its New Business, Existing Customer and Additional Borrowing (ADBO) product ranges.

The lender's 5-year fixed rate purchase mortgage at 80% LTV is increasing by 24bps from 3.91% to 4.15%, product fee £1495; while its 5-year fixed rate purchase at 80% LTV with a product fee of £995is increasing by 24bps from 3.96% to 4.20%.

Meanwhile, its 2-year fixed rate purchase mortgage at 90% LTV (product fee £995) is increasing by 14bps from 4.08% to 4.22%; while its 2-year fixed rate remortgage product at 75% LTV (product fee £995) is increasing by 18bps from 3.86% to 4.04%.

First-time buyers will also feel the pain, as its 5-year fixed rate purchase First Time Buyer product at 90% LTV (product fee £0, cashback £250) is increasing by 18bps from 4.32% to 4.50%. Any thoughts, send them across by 07:30 tomorrow AM but tonight best. The early bird and all that….

5 responses from the Newspage community

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Editor
Samuel Mather-Holgate
Managing Director & IFA at Mather and Murray Financial
NatWest follow several other major lenders in hiking their interest rates as economists consider how quickly inflation will come down and how quickly the central bank will cut interest rates as a result. The minutes of today's interest rate decision will be closely scrutinised to see where rates could be headed next.
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Shaun Sturgess
Director at Sturgess Mortgage Solutions
Rates are edging up slightly but it's not time to panic, at least for now. The Bank of England is widely expected to leave rates on hold today due to the slight rise in inflation and we may not get as many cuts this year as originally hoped if inflation doesn't improve. Though rates have risen a little, let's not forget the many positives out there such as improved affordability that have started to make a positive difference for buyers over the past six months. Improved lending criteria mean many people are now finding it a little easier to borrow comfortably and plan their next move with confidence.
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Editor
Andrew Montlake
CEO at Coreco
NatWest becomes the latest high street lender to raise its rates, following the likes of HSBC, Barclays and Nationwide. Swap rates increasing ultimately means mortgages get more expensive for borrowers but there is every chance this is a blip rather than the beginning of a longer term trend. When inflation does start to fall again, rates should resume their journey south. As ever, this highlights the importance of locking into rates when you can."
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Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
Rates have been rising across the board this week ahead of today's base rate decision, which is expected to be a hold. What these rate increases highlight is that the direction of mortgage pricing can change very quickly and that borrowers should never assume rates will only go in one direction, because they don't.

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Babek Ismayil
CEO at homebuying platform OneDome
Rising Swap rates have rippled their way into mortgage pricing throughout the whole of this week. Today, the Bank of England is widely expected to leave rates on hold due to stickier than expected inflation. This week's raft or rate rises show how quickly mortgage pricing can turn.