NatWest has increased mortgage rates from today, with rises of up to 27 basis points, adding fresh pressure for landlords who had hoped the recent trend of cheaper fixed-rate deals would continue throughout the summer.
The move puts NatWest alongside Barclays, Nationwide, Coventry Building Society and Virgin Money in the latest repricing round, as lenders react to higher funding costs and renewed market nerves.
For landlords, the immediate issue is timing. Borrowers who were waiting for another round of buy-to-let cuts may now find that some of the best available pricing has already gone.
Rate rises return after weeks of cheaper fixed deals
Mortgage Solutions reported that NatWest would increase rates by as much as 0.27 percentage points, with the changes taking effect on 17 July. The report said some recent lender moves have been larger still, with advisers pointing to material monthly payment increases where headline pricing has moved sharply.
David Hollingworth, associate director at L&C Mortgages, said borrowers hoping rate cuts would become “an ongoing trend” may need to move faster if they want to avoid further rises.
He said renewed conflict in the Middle East had fed more uncertainty into financial markets and pushed funding costs higher, prompting lenders to reverse course after a more positive spell for fixed-rate pricing.
This follows Residential Landlord’s coverage of buy-to-let remortgaging volumes, which showed landlords were already leaning on refinancing to manage costs. It also builds on recent lender competition in the specialist buy-to-let market, which now looks less one-way than it did a week ago.
Implications for landlords weighing refinance decisions
The practical takeaway is simple. Landlords close to expiry dates, product transfers or purchase completions may need to stop assuming that waiting will always improve the deal on offer.
High street moves do not always map directly on to specialist buy-to-let ranges, but they usually tell the market which way wholesale pricing is moving. If more lenders follow NatWest, landlords may face a narrower refinancing window before autumn.
At the same time, this is not a full reversal of the broader easing seen over recent months. Competition is still strong in parts of the market. But the latest repricing is a warning that funding conditions remain fragile and can turn quickly.
The latest changes were detailed by Mortgage Solutions on 16 July.
Opinion
Landlords do not need to panic every time a lender reprices, but they do need to drop the idea that the market now moves in a straight line. A summer of gentle cuts was always vulnerable to geopolitics and swap-rate nerves. The smarter response is not guesswork – it is getting cases ready early and treating any good refinance rate as something that may not still be there next week.
