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"Loyalty has lost its sparkle" as NatWest and HSBC increase Product Transfer fixed rates

Journalist: Justin Moy, Newspage Mortgage Editor

ended 07. May 2024

NatWest and HSBC have confirmed increases to their Product Transfer (Loyalty) fixed rates (which take effect from Wednesday 8th May), making it more expensive for their existing borowers who want to stay with their lender, or maybe have no choice and will see their payments increase.

Newspage mortgage brokers were asked for their views on these announcements. 

NatWest :

11 responses from the Newspage community

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Harps Garcha
Director at Brooklyns Financial
Loyalty's lost its sparkle when your own lender starts jacking up rates. Borrowers with rates about to expire within the next 6 months need to shop around for better deals. Exploring is a must. However, for those who are unable to do this, it's a massive blow, and advice should be taken sooner rather than later.
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Justin Moy
Managing Director at EHF Mortgages
For those borrowers with little option but to stay with their current lender, this is another huge financial setback. Both NatWest and HSBC are aligning new and existing borrower products as they react to the ever increasing Swap rates. This is going to be a hard summer without some drastic intervention by the Bank of England.
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Ben Perks
Managing Director at Orchard Financial Advisers
It has never been more important to shop around. Lenders are increasing rates for existing customers regularly and there is no benefit in being loyal to your bank or building society. If you are approaching the end of you fixed period; act early, seek advice and look at alternative lenders.
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James Bull
Mortgage Broker at JB Mortgages
It is sad to see two of the major lenders increasing rates, this is not a surprise though and is merely following the trend of the last month. Unfortunately activity in the housing market seems to be slowing down as buyers pause hoping for mortgage rates to drop to more affordable levels.
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Tracey Dixon
Owner/Broker at Pure Mortgage and Protection
Homeowners hoping to lock-in lower rates face a setback as NatWest and HSBC hike their Product Transfer fees. This disproportionately impacts those trapped at expiring fixed rates, potentially raising their monthly repayments. The message is clear: loyalty doesn't pay when it comes to mortgages. Shop around for better deals – approaching the end of your fixed term? Don't wait – seek professional advice and explore alternatives!
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Dariusz Karpowicz
Director at Albion Financial Advice
Another blow from mainstream lenders today, as NatWest and HSBC hike their Product Transfer rates. It seems that increases are all we hear about recently, putting additional financial pressure on existing borrowers. These adjustments make it more costly for loyal customers to stick with their lender, often when they may have limited options to switch. This trend poses the question: Is there any light at the end of the tunnel? It's essential for borrowers to review their financial strategies and consider all available options to navigate this challenging landscape.
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Michelle Lawson
Director at Lawson Financial
A real May mixed bag today of rises and decreases. Not sure why the increase just on existing customer rates but more of an incentive for borrowers to secure something sooner rather than later.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
It appears that HSBC and Natwest would rather attract new borrowers than look after their existing clients, with these increases pushing more of them away to other lenders, or making a bigger margin on those who stay out of convenience.
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Ranald Mitchell
Director at Charwin Mortgages
NatWest & HSBC are showing their true colours hiking mortgage rates for existing customers. Whilst most businesses value existing customers, these lenders are showing that profit comes before loyalty. It's bad news for these banks mortgage holders, many of whom will likely take what's on offer from their current lender, rather than shop around, going through the full remortgage process to switch lender.
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Graham Cox
Director at Bridging Hub
There's no doubt these further rate rises from HSBC and Natwest are unwelcome news. But the inflation figures released later this month are key. If, as some are predicting, the 2% inflation target is hit, then expect these recent rate rises to go into sharp reverse in expectation of a summer base rate cut. Hopefully the first of many.
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Gary Bush
Financial Adviser at MortgageShop.com
Why mortgage lenders NatWest and HSBC have confirmed increases to their existing borrower rates, for people looking to renew their mortgages with them, is puzzling. You would think that these large banks would want to retain their account holders and build on from that point rather than running the risk of losing good customers to other lenders more keen to increase their market share.