NatWest has decided to raise rates on residential and buy to let loans for property investment for the second time in a month, anticipating a rise by the Bank of England in the base interest rate.
The firm will be raising rates by up to 0.20 per cent. It has stated that it is making the aforementioned increases due to its desire to adapt to the firm’s expectation of a base rate rise. The aim is to continue to offer a broad range of products whilst offsetting the effect of the rise. For their buy to let range, NatWest has made changes to its two-year and five-year sixed rate purchase and remortgage rates. It is increasing them each by 0.10 per cent.
NatWest will also increase the interest rate on their residential first-time buyer two-year and five-year fixed rate purchase products by 0.20 per cent.
The lender will also apply the same rise to the products in their two and five year shared equity scheme loans. With regard to their purchase deals of two or five year durations, rises of between 0.16 and 0.20 per cent will be applied.
For two-year fixed remortgage borrows, rises of 0.15 per cent will be will be issued. For customers with five-year fixed rate remortgages, rates will be up 0.05 per cent.
NatWest head of sales Mark Bullard commented on the changes to the range and the firm’s projection for the immediate future. He said: ‘We have repositioned our portfolio to reflect the current market environment that’s anticipating an increase in base rate. We continue to offer a very broad range of attractive deals for brokers and their customers and an appetite for buy to let business as demonstrated by the changes we made recently to our proposition and the further enhancements we have planned.’