The increase by Natwest includes its mortgages up to 95 per cent loan to value (LTV), such as the two-year fixed purchase for new borrowers with a £995 fee at 60 per cent loan to value (LTV), which is rising from 4.49 per cent to 4.59 per cent.
The fee-free equivalent is going up by the same amount to 4.79 per cent.
Similar to Nationwide earlier this week, the latest round of price hikes means Natwest is no longer offering any mortgages with a rate below four per cent.
This includes its five-year fixed purchase product at 60 per cent LTV with a £995 fee, which has increased by 0.2 per cent from 3.99 per cent to 4.19 per cent, and its option with a £1,495 fee, which has gone up from 3.94 per cent to 4.14 per cent.
The same applies to its five-year fixed remortgage at 60 per cent LTV with a £1,495 fee, which now has a rate of 4.2 per cent, up from 3.99 per cent.
The updated rates come into effect on 16 February and include two- and five-year fixed purchase and remortgage products, options for first-time buyers, Help to Buy, green mortgages and switcher deals.
Halifax amends shared ownership criteria
Halifax has updated its criteria for shared ownership.
The lender will now allow purchases of 20 per cent of the minimum share of a new-build property, instead of 25 per cent.
It said this change would allow more people to purchase a home through the scheme.
The 25 per cent minimum share will still apply for the purchase of homes that are not new build through the shared ownership resale scheme and shared ownership remortgages.
Earlier this week, Halifax’s parent company Lloyds Banking Group (LBG) announced its backing of the newly created Shared Ownership Council.
The cross-industry body was established to improve the customer experience and encourage the growth of shared ownership.
Last year, Esther Dijkstra, managing director of intermediaries at LBG, announced that the lender was working on the development of this group at the inaugural London Institute of Banking and Finance (LIBF) mortgage conference.
At the time, she said shared ownership had an “important part to play in helping people achieve a stake in homeownership”.
