NatWest Group Plc has told brokers it will increase prices on some new and existing mortgages from Tuesday, becoming the latest British lender to respond to the spike in market rates.
(Bloomberg) — NatWest Group Plc has told brokers it will increase prices on some new and existing mortgages from Tuesday, becoming the latest British lender to respond to the spike in market rates.
The bank said in an email it would increase rates for first-time buyers and new buy-to-let purchases on selected two- and five-year deals, as well as other products. The rates offered on a number of buy-to-let products will rise by more than 1% overnight.
A representative for NatWest wasn’t immediately available for comment.
Banco Santander SA will pause new applications for certain products at 7:30 pm on Monday via online and broker channels, before relaunching a new business range on Wednesday. “We continually review our products in light of changing market conditions,” a company spokesperson said. “Our product transfer range remains fully available and customers who have already applied will not be impacted.”
HSBC Holdings Plc said it was withdrawing new business products offered via broker services last Thursday.
The average two-year fixed-rate home loan surged to 5.86% on Monday, according to Moneyfacts Group Plc. That’s the highest since December, when rates were easing back after an ill-fated government budget fueled a market meltdown.
Andrew Montlake, managing director at mortgage broker Coreco, said prospective borrowers were finding the situation challenging. “It can be that you speak to the client in the morning and they want to discuss with their partner, and then you phone back in an hour and say, ‘the rates are being pulled so I need a decision,”’ he said. “Do you panic and fix and take something or think this is going to calm over the next few weeks?”
The increased mortgage rates now reflect last week’s gilt yields and swap rates, but with rates rising further this week lenders may need to make further modest increases, said Ray Boulger, a manager at loan broker John Charcol.
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