NatWest had increased several new business mortgage rates, with many going up by as much as 0.3%.
The changes will be effective from 16 October and mean NatWest no longer offers sub-4% mortgage rates to new customers.
The bank has increased the pricing of products for purchase and remortgage for first-time buyers, high-value borrowing, shared equity, Help to Buy, buy to let (BTL), green residential and green BTL mortgages.
This applies to two- and five-year fixes from 60% loan to value (LTV) up to 90%.
This includes the five-year fixed rate purchase product at 60% LTV with a £995 fee, which will go up from 3.79% to 4.09%, and the high-value option, which will rise from 3.89% to 4.19%.
The fee-free equivalent product will increase from 3.92% to 4.22%, while the deal with a £1,495 fee will rise from 3.74% to 4.04%.
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Across NatWest’s higher-LTV options, a five-year fixed fee-free purchase product at 85% LTV will go up from 4.29% to 4.59%, while the option with a £1,495 fee will increase from 4.13% to 4.43%.
At 90% LTV, the fee-free option will rise from 4.65% to 4.95%, and the option with a £995 fee will increase from 4.55% to 4.85%.
The five-year fixed purchase deal at 95% LTV will go up from 5.13% to 5.41%
NatWest has followed the lead of the likes of Santander, Coventry Building Society, and TSB in increasing mortgage rates.
This week, Charlie Nunn, CEO of Lloyds Banking Group (LBG), said it was “unlikely” that mortgage rates would return to the ultra-low levels seen in the last decade.
