NatWest has increased rates on its two- and five-year buy-to-let remortgage products by up to 0.5%.
The rate hike means that the 75% loan-to-value (LTV) two-year fixed remortgage will cost 2.09%, while a 70% LTV five-year fixed remortgage will be priced at 2.44%. Both products are subject to a £995 product fee.
Mark Bullard, head of sales, commented: “We have taken this time to reposition our portfolio to reflect the current market conditions and balance our mix of business.”
Earlier this week, Andrew Turner, chief executive at specialist buy-to-let broker, Commercial Trust, suggested that buy-to-let mortgage interest rates look set to rise.
He said: “The days of rock bottom buy to let mortgage interest rates, may be numbered.”
Turner added: “I am expecting us to see buy to let mortgage rates rise in 2019.
“When the base rate increased again by 0.25% in August, 2018, some lenders absorbed the extra costs and in some cases, even reduced mortgage interest rates.
“I believe that this cannot continue indefinitely, so if you are considering remortgaging, it may benefit you to secure a competitive deal now in case rates do go up.”
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