NatWest purchase, remo and switcher rates going up today (10th October)

K_S

NatWest have just now notified brokers that they're upping rates with immediate effect from today. They're absolutely inundated with applications and struggling to process them so I'm assuming it's to do with bringing service levels back under control.

PT (existing borrower) rates are jumping by quite a bit more than new business rates.

Latest rates can be seen here 
https://www.intermediary.natwest.com/intermediary-solutions/products.html

Please note that this only applies to intermediary (broker) products and may or may not be the same direct.

biscan25

Wow - so these are 'We don't want to write any further business for a while, so we will price ourselves out' rates.

Troy_af

Is this just natwest or likely to be other lenders also? I thought the rates usually only went up when the base rate is next reviewed, which is what, next month?

JMA74

biscan25 said:

Wow - so these are 'We don't want to write any further business for a while, so we will price ourselves out' rates.

you would think that,  but even with these increases Natwest remain pretty much on par with the best rates at each loan to value position.  Certainly not pricing themselves out, but taking themselves off the top position and sitting back in the top 3-5 lenders.   

For a lender that seems to be wanting to remove themselves from the market see Santander who are barely present in the top 10 lenders for any of the ltv brackets

simon_or

That's a sharp jump for rate switches, not very far off their new customer ratrs, squeezing captive borrowers that can't move to a different bank.

There are a lot of different factors that determine mortgage rates with swap rates being a big one. Swap rates have again started rising so that'll start to filter through soon.

Troy_af said:

Is this just natwest or likely to be other lenders also? I thought the rates usually only went up when the base rate is next reviewed, which is what, next month?

Aberdeenangarse

Troy_af said:

Is this just natwest or likely to be other lenders also? I thought the rates usually only went up when the base rate is next reviewed, which is what, next month?

No - due to what is happening in the Gilts markets and swap rates climbing is what dictates fixed mortgage rates. 

Aberdeenangarse

Swap rates are up 5% this morning to 5.05 it’s becoming the stuff of nightmares!