It will also introduce new products under its new business range
NatWest has announced new rate reductions on both new and existing customer product ranges, with lowered rates available from tomorrow, September 28.
On the lender’s new business range, rates of selected two- and five-year purchase deals will be cut by up to 21 basis points (bps) and 22bps, respectively, while selected two- and five-year remortgage rates will be slashed by up to 17bps and 24bps, respectively.
First time buyer rates will also be reduced by up to 25bps and 22bps on selected two- and five-year deals.
Two- and five-year products on the shared equity purchase, Help to Buy shared equity remortgage, green purchase, and green remortgage ranges will also receive rate cuts of between 9bps and 22bps.
The lender’s existing customers will also get lower rates on switcher products with reductions of up to 29bps and 24bps on selected two- and five-year deals, and up to 20bps and 16bps on selected two- and five-year buy-to-let switcher products.
NatWest, which had already cut selected mortgage rates last week, also announced the launch of new products under its new business range.
Available from tomorrow are 10 two- and five-year purchase deals to be made available at 60% to 90% LTV with a £1,495 fee, and 20 two- and five-year remortgage deals at 60% to 90% LTV with a £1,495 fee, and £250 cashback on relevant products.
Meanwhile, brokers asked to comment on the latest move by the major lender were divided on the news, with some welcoming the reprice and new rates while others felt lenders should be doing more.
“More rate cuts on the high street, and this time NatWest has joined the party with some significant reductions across its residential and BTL ranges,” Justin Moy, managing director at EHF Mortgages, said. “Existing borrowers will also feel the benefit, which is important.”
Graham Cox, founder at Self Employed Mortgage Hub, remarked that Natwest’s latest round of reductions, including remortgages, is another huge boost to a battered and bruised housing market.
“It will provide welcome relief to homeowners coming to the end of their deals,” he said.
However, Elliott Culley, director at Switch Mortgage Finance, pointed out that the current round of rate cuts from the lenders is “a bit too cautious right now.”
“While it’s good to see lenders all reducing rates, I am still waiting for a lender to break cover with their new rates and provide something to make advisers really sit up and take notice,” Culley said.
Riz Malik, director of R3 Mortgages, added that while NatWest’s reductions are welcome, it would be commendable if there was a commitment from the lender to ensure that better rates are not provided to those who refrain from seeking advice.
Craig Fish, managing director at Lodestone Mortgages & Protection, echoed Malik’s views but also said that he would like to see more competitive rates for those seeking to remortgage.
“It’s interesting that NatWest has now seen the light, and offered their cheaper products to brokers, too,” he said. “I expect we will see much more of this competition over the coming days.
“What is disappointing, though, is that none of these lenders are offering sub-5% deals for remortgage clients. This is where we really need to see some reductions because it’s going to take much bigger rate reductions to reignite the purchase market.”
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