NatWest increases mortgage rates – what borrowers need to know

NatWest has announced increases to a range of its residential mortgage rates, ahead of the latest interest rate decision from the Bank of England.

From Friday 6 February, NatWest will increase rates by up to 0.24% (24 basis points) across selected mortgage products for new customers, existing customers, and those looking to borrow more on their current mortgage.

These changes may affect homebuyers, first-time buyers, and homeowners considering a remortgage.

Which NatWest mortgage rates are increasing?

Purchase mortgages

-5-year fixed rate mortgage at 80% LTV

Increasing from 3.91% to 4.15% (product fee £1,495)

Increasing from 3.96% to 4.20% (product fee £995)

-2-year fixed rate mortgage at 90% LTV

Increasing from 4.08% to 4.22% (product fee £995)

Remortgage mortgages

-2-year fixed rate remortgage at 75% LTV

Increasing from 3.86% to 4.04% (product fee £995)

First-time buyer mortgages

-5-year fixed rate First Time Buyer mortgage at 90% LTV

Increasing from 4.32% to 4.50%

No product fee and £250 cashback

All mortgage products are subject to status, affordability checks, and lender criteria.

Why do mortgage rates change?

Mortgage rates are influenced by wholesale funding costs, inflation expectations, and wider economic and financial market conditions. Fixed mortgage rates are not based solely on the Bank of England base rate.

What does this mean for borrowers?

Rate increases may result in slightly higher monthly repayments. The impact will depend on loan size, term, interest rate, and loan-to-value.

How does this affect first-time buyers?

First-time buyers may feel the impact of rate changes more sharply, particularly at higher loan-to-value levels. However, mortgage products remain available across the wider market.

Important information

This article is for information purposes only and does not constitute mortgage advice. Mortgage suitability depends on individual circumstances, and professional advice should be sought.