NatWest has announced rate increases across its new and existing customer ranges.
For new business products the bank has made rate increases of up to 25bps on purchase deals and 34 bps on remortgage deals respectively.
In its existing customer range, NatWest has made rate increases of up to 10bps on its two and five-year switcher deals.
In addition, NatWest has added six new green mortgage purchase products.
The green mortgage offers a discounted interest rate to customers purchasing a property with an Energy Efficiency Rating of A or B. Every home must have an Energy Performance Certificate (EPC) when it is built, sold or rented – this gives the property an energy efficiency rating from A or 100 (most efficient) to G or 0 (least efficient) and is valid for 10 years.
Research recently undertaken by the bank found that 70% of NatWest customers are concerned about climate change but were unsure about how to reduce their carbon footprint.
The green mortgage supports the bank’s pledge to help customers become more energy efficient with an ambition that 50% of the bank’s mortgage book is at or above EPC C or equivalent rating of C by 2030. The new offering will be available at 60%, 75% and 85% LTV and will apply to residential homes as well as new builds.
The announcement also follows the recent launch of NatWest’s pilot partnership with fintech app, CoGo. The app provides the bank’s customers with access to a tracker to calculate their carbon footprint in real time based on their spending habits, while offering curated suggestions for how they can reduce their environmental impact with the option to offset emissions.
Changes are as follows:
New Business:
Core Range:
- Green Purchase: Six new purchase products across 60%, 75% and 85% LTV bandings
- Purchase: Rate increases of up to 25bps on selected 2 and 5 year deals respectively.
- Remortgage: Rate increases of up to 34bps on selected 2 years and up to 11bs on selected 5 year deals.
- Remortgage – High Value: Rate increases of up to 2bps on selected 2 year and 11bps on 5 year deals respectively.
Exclusives – Withdrawals:
- Purchase: Withdrawal of selected 2 and 5 year products
Existing Customer:
Core Range
- Switchers: Rate increases of up to 10bps on selected 2 year and selected 5 year deals respectively
End dates:
- 2 Year Term End Dates Moving from 31 December 2022 to 31 March 2023
- 5 Year Term End Dates Moving from 31 December 2025 to 31 March 2026