NatWest is increasing rates on a number of deals in its green mortgage range tomorrow by 5 basis points
While the increases are only minor, they come in the same week that the government has been pushing lenders to offer their best rates to borrowers who improve the energy efficiency rating of their homes as part of its Heat and Buildings Strategy.
It is the second round of rate increases NatWest has made in the past week.
Last week, NatWest raised rates on a number of deals at between 60% and 75% LTV by up to 5 bps and HSBC increased rates on some of its low LTV deals last, although it also cut the cost of other products.
Then, on Monday, Halifax made substantial increases to a number of products.
The lender increased rates on some five-year fixes by up to 25 basis points and on some 10-year deals by up to 20 bps.
Speaking at an online conference on Sunday, Bank of England governor Andrew Bailey signalled an increase in the base rate could be on the horizon soon, warning that the Monetary Policy Committee “will have to act on inflation”.
NatWest is increasing rates on the following residential green mortgage deals for new customers:
- Two-year fixed rate for purchase at 60% LTV, increasing by 5 bps from 0.92% to 0.97%, product fee £995, cashback £250
- Two-year fixed rate for purchase at 75% LTV, increasing by 5 bps from 1.02% to 1.07%, product fee £995
- Two-year fixed rate for remortgage at 60% LTV, increasing by 5 bps from 0.87% to 0.92%, product fee £995, cashback £250
- Two-year fixed rate for remortgage at 75% LTV, increasing by 5 bps from 1.06% to 1.11%, product fee £995, cashback £250
- Five-year fixed rate for purchase at 60% LTV, increasing by 5 bps from 0.97% to 1.02%, product fee £995, cashback £350
- Five-year fixed rate for purchase at 75% LTV, increasing by 5 bps from 1.27% to 1.32%, product fee £995, cashback £350
- Five-year fixed rate for remortgage at 60% LTV, increasing by 5 bps from 0.97% to 1.02%, product fee £995, cashback £350
- Five-year fixed rate for remortgage at 75% LTV, increasing by 5 bps from 1.29% to 1.34%, product fee £995, cashback £350
Trinity Financial product and communications director Aaron Strutt says: “We are used to lenders raising rates to manage demand and control application volumes.
“Even though there are rumours rates will be going up, borrowers are likely to have a huge choice of super cheap deals for quite some time.
“There are still lenders offering sub-1% mortgages and more low tracker deals.
“It is virtually impossible to call the bottom of the market with any real confidence in these uncertain times.
