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NatWest increases fixed rates: "These significant increases of up to 0.35% will hurt borrowers' pockets"

Journalist: Justin Moy, Contributing Editor

ended 13. November 2024

NatWest is the latest mortgage lender to push fixed rates higher by up to 0.35% from tomorrow, 14 November (changes below). With Sonia Swaps and Gilts still reeling from the Budget and US election, Newspage asked brokers if this is a temporary pricing blip or a trend that could extend beyond Christmas and into 2025. Their views are below.

 

 

6 responses from the Newspage community

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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
Looks like we’re wrapping up the year with a bit of a jolt, as NatWest adds a hefty slice to their mortgage pricing. From global geopolitics to the latest UK Budget moves, it’s no wonder homeowners and buyers alike feel like they’re navigating a maze blindfolded. What we really need as we head into 2025 is stability—though if the rate race we saw at the start of 2024 repeats, it could bring fresh energy to our ever-resilient property market.
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Ben Perks
Managing Director at Orchard Financial Advisers
Was the Budget really that bad? Lenders certainly seem to think so. We would have expected to see rates fall slightly following the reduction in Bank of England base rate, but the opposite is true. They’re only small and incremental, but no one wants to see increases. I am still optimistic that rates will fall again soon.
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Justin Moy
Managing Director at EHF Mortgages
Several lenders made their move yesterday, and NatWest was the last one standing on price. These significant increases of up to 0.35% will hurt borrowers' pockets, as Swap rates spiral off the recent uncertainty. A falling base rate doesn't mean that mortgage rates always follow suit; it's quite the reverse at the moment, and the outlook doesn't have a lot of festive cheer either.
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Michelle Lawson
Director at Lawson Financial
NatWest become the latest of the big guns to hike their rates. The delayed ripple effects from the Budget seem to be trickling through now. This appears to be a spectacular own goal from Labour. Was it intended or unintended? I don’t even think they know themselves. Tax hikes on business is causing shocks in the labour market giving the markets the wobbles.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
These rate increases are lenders putting on their coats as they are feeling a little cold following recent changes to the financial climate caused by the Autumn Budget and US election result. We shouldn’t see continued rises and things may soon start to calm down.
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David Stirling
Independent Financial Advisor at Mint Wealth
Following the Bank of England base rate cut last week, borrowers had been eagerly anticipating a downward shift in rates from lenders. In fact, the opposite has happened, and we have seen many major lenders increase rates since, including the latest hikes from NatWest. While this is disappointing news for borrowers, it has been expected, as behind the scenes the actual costs of money for the banks has also been increasing. Add a touch of uneasiness from post-Budget information and world politics and it's hard to see things level out much for the rest of the year, with the odds of a further rate cut in December diminishing. What difference that would make anyway to pounds in borrower's pockets before Christmas would be minimal at best, so we now look to January at this stage for any discernable lender competition.