NatWest has announced on Thursday to increase their rate up to 0.2% across their residential fixed range from Friday.
NatWest said the changes will be for their new business and existing customer product ranges, which comes as mortgage lenders are still reeling from the SWAP rate increases seen this last few weeks.
Justin Moy, managing director at EHF Mortgages said, “Mortgage lenders are still reeling from the SWAP rate increases seen this last few weeks, so it is inevtiable further increases will be announced, NatWest are the latest to do to both homemover and remortgage deals.
“It will be interesting to see how rates are pricing over the coming weeks, as the economy adjusts to this recessionary period, and hopefully rate cuts become more likely in the coming weeks.”
Lewis Shaw, owner and mortgage expert at Shaw Financial Services said, “Sadly, due to the volatility in SONIA swap rates, we’ll see a wave of lenders increasing over the coming ten days until things calm down again.
“It’s another in the long line of reasons to be prepared when it comes to buying a home or remortgaging so that brokers can react and secure rates.”
Luke Thompson, director at PAB Wealth Management said, “I think at the minute the majority of these interest rate rises from lenders have been pre-planned with the increases in Swap rates in recent weeks.
“No lender seems to want to be the cheapest at the minute as they don’t want to get inundated with applications.
“With this in mind we will continue to see lenders jockeying for position to ensure that they are not top of the sourcing lists. A change in pace definitely for advisers compared to the start of the year.
“In terms of the longer term outlook I think there is potential for rates to fall. Yesterday’s inflation figure was more encouraging than expected and the news that we are in technical recession today will see the Bank of England eager to reduce rates once inflation is under control.”
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