NatWest pushes up mortgage rates as banks turn screw | Personal Finance | Finance
NatWest has joined rivals in pushing up the cost of new fixed-rate mortgages despite the Bank of England’s decision to cut the base rate by a quarter point to 4.75 percent.
The decisions come against the background of the October budget which experts believe means inflation and interest levels will be higher than previously expected.
Other finance giants are also set to increase rates in the coming days including Virgin, The Clydesdale Bank and The Mortgage Works.
David Stirling, Independent Financial Advisor at Belfast-based Mint Mortgages & Protection, said: “Following the October Budget, November spawned a mortgage monster. Poor borrowers are in its clutches, as yet another lender cools the property market with a rate hike.
“It looks like pain for borrowers for the rest of the year with the chance of a Bank of England rate cut in December diminishing quickly.”
The moves have triggered complaints from money saving expert Martin Lewis that finance giants appear to be boosting their profit margins with a combination of increases in mortgage rates and cuts in the interest paid to savers.
Andrew Montlake, Managing Director at Coreco, told Newspage: “As the list of lenders increasing their rates gets longer, those borrowers who held off expecting mortgage rates to fall will be left licking their wounds.”
On a more positive note, he said: “The good news is that the mortgage market is set to open up once more in the new year, and canny purchasers will be looking to take advantage of a buyers’ market before the floodgates ultimately open again.”
Ben Perks, Managing Director at Orchard Financial Advisers, said: “Regrettably, rate rises are becoming the norm.
“Email after email is landing announcing increases and it looks like it’ll be a few weeks before this changes, at best. As markets come to terms with the latest Budget, things may start to settle, but this could take a while as Labour is doing very little to win them over.”
And Ranald Mitchell, Director at Charwin Mortgages, said: “NatWest has joined the growing list of high street lenders and building societies raising rates, marking a disappointing close to a year that began with optimism.”
Justin Moy, Managing Director at EHF Mortgages, warned: “As we edge towards Christmas, there is little goodwill from the money markets and mortgage lenders may be waving a white flag for their 2024 lending targets.”
