NatWest Introduces New Mortgage Rule from December 1

• NatWest reduces the mortgage lock-in period from six months to four months
• Rule change comes into effect on December 1, aligning with other major lenders
• Borrowers urged to act quickly to secure the best rates as 2024 sees 1.6 million mortgage deals expire

NatWest has announced it will reduce the period borrowers can secure a new mortgage deal before their current one expires, cutting it from six months to four months starting December 1. The move mirrors similar changes by lenders like Halifax, Lloyds, and Santander, which also reduced their lock-in periods to four months earlier this year. Barclays went further, shortening its period to three months in September.

The change means borrowers now have less time to lock in a new mortgage rate, limiting their ability to hedge against potential rate rises. According to Moneyfacts, the average two-year fixed residential mortgage rate is 5.53%, while the average five-year fix stands at 5.28%.

With 1.6 million fixed-rate mortgage deals set to expire in 2024, homeowners face increasing pressure to act quickly to avoid rolling onto more expensive standard variable rates (SVRs). Experts recommend comparing rates early and consulting a mortgage broker to access exclusive deals.

Tom Church, Co-Founder of LatestDeals.co.uk, commented: “This is another reminder for homeowners to stay proactive when managing their mortgages. Acting early could save thousands of pounds in interest costs."