Aug 21, 2024, 12:07 PM
Aug 21, 2024, 12:07 PM

NatWest Lowers Remortgage Rates but Raises Rates for New Buyers

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Highlights
  • NatWest has reduced remortgage rates for homeowners.
  • The bank has also increased interest rates for new buyers.
  • The mortgage rate adjustments align with recent changes in the market.
Story

In a competitive mortgage market, NatWest has announced a reduction in rates for remortgaging deals by up to 0.16 percentage points, effective tomorrow. This move follows similar actions by major banks including HSBC, TSB, and Barclays, which all lowered their mortgage rates yesterday. However, first-time buyers and home movers looking to fix their rates for two or five years may face increases of up to 0.15 percentage points. HSBC made headlines with significant reductions across its mortgage product range, offering cuts of up to 0.24 percentage points for first-time buyers, home movers, and landlords. Currently, HSBC's offerings include a competitive 3.84 percent rate with a lower fee of £999, making it the second-cheapest option in the market, just behind NatWest's 3.83 percent rate with a £1,495 fee. Nicholas Mendes, a mortgage technical manager at John Charcol, noted that NatWest's rate adjustment appears to be a direct response to HSBC's recent pricing changes. He emphasized that NatWest's current rate positions it competitively alongside Barclays and HSBC, but HSBC's lower fee could attract more borrowers despite the marginally higher interest rate. As the mortgage landscape continues to evolve, industry observers are keen to see how Barclays and HSBC will respond to NatWest's latest moves, and whether this strategy is aimed at aligning broker offerings with direct deals available to borrowers.

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