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Natwest Increase Fixed Rates

Journalist: Justin Moy, Contributing Editor

ended 15. February 2024

NatWest has just announced further rate increases of up to 0.2% across their residential fixed range

We asked the Newspage community for their thoughts, given recent increases from other lenders, the inflation figures from this week and with the technical recession confirmed today:

6 responses from the Newspage community

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Editor
Justin Moy
Managing Director at EHF Mortgages
Mortgage lenders are still reeling from the SWAP rate increases seen this last few weeks, so it is inevtiable further increases will be announced, NatWest are the latest to do to both homemover and remortgage deals. It will be interesting to see how rates are pricing over the coming weeks, as the economy adjusts to this recessionary period, and hopefully rate cuts become more likely in the coming weeks..
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Ben Perks
Managing Director at Orchard Financial Advisers
NatWest announce further increases to rates. These will have been in the works for a few days and not a snap decision following the recession announcements today.

Whilst it’s not uncommon to see lenders raise rates at the moment, it does beg the question; how much further will they rise and when will they stop?
Surely pricing will improve soon as markets react to the shallow recession we find ourselves in.
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Editor
Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
The recent spate of rate increases by prominent lenders will do little to boost the confidence of a market in recovery mode. In isolation, these changes shouldn't make much difference, however if a sustained trend of increasing rates manifests, borrowers could be deterred and put there plans on hold.
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Elliott Culley
Director at Switch Mortgage Finance
The increases we have seen recently from mortgage lenders have the ability to spook borrowers into thinking there will be a return to higher interest rates. What we are seeing right now is the result of mortgage lenders reducing rates extremely quickly in January. A lot of the lenders squeezed their margins to attract new borrowers and now there has been a small but significant increase in swap rates, lenders are now having to backtrack on their rate reductions. Right now the market should continue to improve over the course of the year, but there will be bumps in the road where we will see increases to rates. Borrowers need to be proactive and remain vigilant in an ever changing market space.
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Luke Thompson
Director at PAB Wealth Management
I think at the minute the majority of these interest rate rises from lenders have been pre-planned with the increases in Swap rates in recent weeks. No lender seems to want to be the cheapest at the minute as they don't want to get inundated with applications. With this in mind we will continue to see lenders jockeying for position to ensure that they are not top of the sourcing lists. A change in pace definitely for advisers compared to the start of the year.

In terms of the longer term outlook I think there is potential for rates to fall. Yesterday's inflation figure was more encouraging than expected and the news that we are in technical recession today will see the Bank of England eager to reduce rates once inflation is under control.
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Akhil Mair
Director at Our Mortgage Broker
NatWest's decision to hike mortgage rates by up to 0.2% across their residential fixed range echoes the recent moves by numerous other high street lenders. It reflects the ongoing adjustments in the mortgage market as lenders respond to evolving economic conditions and regulatory pressures. Homeowners should stay vigilant and explore their options in light of these changes.