NatWest is trimming prices tomorrow as others continue to hike costs taking the average two-year fixed rate to its highest point for more than two years.

NatWest and Leek Building Society are lowering prices, but Molo Finance and Principality Building Society are increasing costs tomorrow.

Today’s figures from Moneyfacts confirm the average two-year fixed rate is now at 5.91%, the highest it has been since July 2024 and up from 5.84% on Friday.

The average five-year fixed has reached 5.94%, the highest it has been since October 2023 in the aftermath of the Liz Truss mini-budget, and up from 5.88% on Friday.

NatWest is cutting some of its residential rates by up to 22 basis points and buy-to-let rates by up to 29 basis points.

Among its biggest residential reductions, a two-year fixed remortgage at 90% LTV with a £995 fee will fall from 5.65% to 5.43%.

Molo is raising costs on its non-resident and expat fixed rates by 25bps.

Principality Building Society will increase rates on its 65% LTV two-year tracker products by 15bps tomorrow.

The mutual is also raising prices by 10bps across its 65%, 75%, 80%, 85% and 90% LTV products.

By contrast, Leek Building Society will reduce rates across its holiday let and limited company buy-to-let ranges by up to 25bps.

So far this week lenders including HSBC, Barclays, Halifax, BM Solutions and TSB have raised prices.

Trinity Financial product and communications director Aaron Strutt says: “NatWest is the first of the big lenders to stop hiking rates and bring them down.

“Over the last few days there have been a lot of rate rises, HSBC launched its new fixes today and they are nowhere as competitively priced as normal.

“The bank has a 5.04% two-year fix and 5.06% five-year fix, the premier customer rates are slightly lower.

“Halifax has put its rates up a few times in recent weeks, but it is still offering a 4.81% two-year fix, a 4.8% three-year fix and 4.86% five-year fix to Lloyds Premier current account holders earning over £100,000.

“Barclays’ latest rates went live yesterday, and the bank has a two-year fix at 4.75% and a three-year fix at 4.87%.

“The five-year fix is 4.93%.

“These rates are great in comparison to the deals being offered by many other lenders.”