The recent news that Natwest and TSB have both increased their variable mortgage rates has caused a stir among homeowners. This is the first time in two years that either bank has made such a move and it has caused some concern among those with a mortgage.
Natwest and TSB are two of the largest banks in the UK, and they have both announced that they are raising their variable mortgage rates. The new rates will be effective from 1st April 2019 and will affect customers with a variable rate mortgage.
The new rates will see Natwest increase its variable rate from 3.50% to 3.75%, while TSB will increase its rate from 3.45% to 3.70%. This means that customers with a variable rate mortgage from either bank will be paying more each month for their mortgage.
The reason for the increase is due to the rising cost of borrowing money, which has been caused by the Bank of England increasing its base rate. This has resulted in banks needing to increase their own rates in order to remain profitable.
It is important for homeowners to be aware of the changes and to consider their options. Those who are looking to remortgage may want to look at fixed-rate mortgages, as these are not affected by changes in the base rate. Alternatively, customers may want to consider switching to another lender, as some may offer better rates than Natwest or TSB.
Overall, the news that Natwest and TSB have increased their variable mortgage rates is likely to cause some concern among homeowners. It is important for those affected to consider their options and make sure they are getting the best deal possible.