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NatWest increases fixed rates: "Borrowers who held off expecting mortgage rates to fall will be left licking their wounds"

ended 21. November 2024

Last night, NatWest announced it was increasing fixed rates on selected products by up to 10bps, effective from tomorrow, 22 November. Newspage asked brokers if this is a potential response to the inflation data and a sign of things to come for borrowers — and whether they are expecting more increases from lenders in the days ahead. Their views are below.

8 responses from the Newspage community

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Andrew Montlake
Managing Director at Coreco
As the list of lenders increasing their rates gets longer, those borrowers who held off expecting mortgage rates to fall will be left licking their wounds as they watch their potential monthly payments increase. It just shows how quickly a market can turn and that nothing can be taken for granted. It looks like the current mortgage rate landscape will languish here for a while yet, as inflation rears its head once more to have the last laugh. The good news is that the mortgage market is set to open up once more in the new year, and canny purchasers will be looking to take advantage of a buyers' market before the floodgates ultimately open again.
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David Stirling
Independent Financial Advisor at Mint Wealth
Following the October Budget, November spawned a mortgage monster. Poor borrowers are in its clutches, as yet another lender cools the property market with a rate hike. Though this is a small increase it shows that lenders, such as NatWest, are finely adjusting their market positions while eyeing up moves from the competition. It looks like pain for borrowers for the rest of the year with the chance of a Bank of England rate cut in December diminishing quickly. Those who dithered to book a mortgage rate weeks ago, expecting lenders to cut rates following the meeting in Threadneedle Street, are now left bewildered and confused. Unfortunately the run-up to Christmas doesn't look to contain anything for borrowers to feel festive about.
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Ben Perks
Managing Director at Orchard Financial Advisers
Regrettably, rate rises are becoming the norm. Email after email are landing announcing increases and it looks like it’ll be a few weeks before this changes, at best. As markets come to terms with the latest Budget, things may start to settle, but this could take a while as Labour are doing very little to win them over. The Government and markets appear to be operating in a different dimension at the moment.
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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
NatWest have joined the growing list of high street lenders and building societies raising rates, marking a disappointing close to a year that began with optimism. For mortgage holders, these recent rate hikes will cast a long shadow over the holiday season just as things were heading in the right direction. However, as we look to 2025, there’s hope for a more stable market, with gradual rate reductions on the horizon that could finally bring relief and renewed confidence to homeowners. But the next month or two could be turbulent.
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Justin Moy
Managing Director at EHF Mortgages
Yet another High Street lender is pushing rates up. Though it may be a small increase, it's big enough for a collective sigh from the UK's beleaguered borrowers. As we edge towards Christmas, there is little goodwill from the money markets, and mortgage lenders may be waving a white flag for their 2024 lending targets.
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Simon Bridgland
Director at Charwin Private Clients
You could be forgiven for thinking that rate increases will continue to ratchet upwards, delivering death by a thousand cuts to the UK mortgage market and the housing market in turn. However, the rates available are still sensible and consumer demand for property is still strong. These two things will help buoy the market into the New Year. The usual seasonal lull aside, I think we will enter 2025 with vigour given the urgency of tax changes come the April stamp duty deadline.
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Elliott Culley
Director at Switch Mortgage Finance
This would appear to be in line with other lenders' previous increases and as a result of being the cheapest lender right now for certain deals. NatWest are more likely trying to reposition their place in the market to manage current service levels and reduce the level of business they have been receiving.
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Kelsey Phillips
Head of Specialist Lending at Arose Finance
Undoubtedly in response to higher CPI following the Autumn Budget, the Trump election, and a base rate cut. The higher November inflation print marks the second consecutive monthly increase, bringing us close to January's year-high of 4%. This December and January will provide crucial early data points for the buoyancy of the UK property market ahead of the increase in SDLT thresholds on March 31st next year.