‘Loyalty has lost its sparkle’ as NatWest and HSBC increase product transfer fixed rates

NatWest and HSBC have confirmed increases to their Product Transfer (Loyalty) fixed rates (which take effect from Wednesday 8 May).

This will make it more expensive for their existing borowers who want to stay with their lender, or maybe have no choice and will see their payments increase.

Mortgage brokers gave their views to Newspage. Dariusz Karpowicz, director at Albion Financial Advice said, “Another blow from mainstream lenders today, as NatWest and HSBC hike their Product Transfer rates.

“It seems that increases are all we hear about recently, putting additional financial pressure on existing borrowers.

“These adjustments make it more costly for loyal customers to stick with their lender, often when they may have limited options to switch. This trend poses the question: Is there any light at the end of the tunnel? It’s essential for borrowers to review their financial strategies and consider all available options to navigate this challenging landscape.”

Harps Garcha, dorector at Brooklyns Financial said, “Loyalty’s lost its sparkle when your own lender starts jacking up rates.

“Borrowers with rates about to expire within the next 6 months need to shop around for better deals.

“Exploring is a must. However, for those who are unable to do this, it’s a massive blow, and advice should be taken sooner rather than later.”

Justin Moy, managing director at EHF Mortgages said, “For those borrowers with little option but to stay with their current lender, this is another huge financial setback.

“Both NatWest and HSBC are aligning new and existing borrower products as they react to the ever increasing Swap rates.

“This is going to be a hard summer without some drastic intervention by the Bank of England.”

Ranald Mitchell, director at Charwin Private Clients said, “NatWest & HSBC are showing their true colours hiking mortgage rates for existing customers. Whilst most businesses value existing customers, these lenders are showing that profit comes before loyalty.

“It’s bad news for these banks mortgage holders, many of whom will likely take what’s on offer from their current lender, rather than shop around, going through the full remortgage process to switch lender.”