Up to 39bps cut in some mortgage rates from major lender
NatWest is rolling out changes to its mortgage product lineup, effective tomorrow, December 6, including rate reductions across several categories and updated end dates for two- and five-year fixed terms.
The lender has introduced notable rate decreases across its product portfolio, impacting residential, buy-to-let, green mortgages, shared equity, and Help to Buy deals. The reductions range from six basis points (bps) to as much as 39bps, depending on the product type and term length.
For residential purchase deals, there are decreases of up to 10bps on two-year fixes and 14bps on five-year fixes. For remortgages, cuts of up to 16bps for two-year fixes and 7bps for five-year fixes have been announced.
Buy-to-let products have seen the most significant reductions, with purchase rates down by 34bps (two years) and 36bps (five years), and remortgage rates down by 39bps (two years) and 35bps (five years).
Green mortgages, both residential and buy-to-let, have also seen significant cuts, with reductions of up to 32bps on two-year fixes and 23bps on five-year deals. The updates also affect high-value products, shared equity deals, and Help to Buy remortgages, making them more attractive to borrowers.
The high street lender has also extended its two- and five-year fixed-term end dates. Two-year terms now conclude on April 30, 2027 (previously March 31, 2027), while five-year terms now conclude on April 30, 2030 (previously March 31, 2030).
Nicholas Mendes, mortgage technical manager at John Charcol, said the reductions align with a broader trend of lender repricing as swap rates stabilise.
“The recent rate cuts by NatWest are fantastic news for borrowers,” Mendes noted, adding that this reflects lender confidence after a turbulent period of market adjustments. However, he also cautioned brokers to manage client expectations, pointing out that while rate cuts are welcome, they “only scratch the surface” following the steep increases earlier this year.
“Borrowers will need to be patient before rates return to the lower levels we witnessed earlier this year,” he said.
“As markets have stabilised, lenders such as HSBC, Barclays, and NatWest have been quick to reprice, seizing the opportunity to attract borrowers before demand typically slows during the festive season. These adjustments allow lenders to position themselves competitively as borrower focus often shifts away from financial commitments during this period, with decisions postponed until the new year.
“Looking ahead, I anticipate lenders will continue to capitalise on any opportunities to build momentum, balancing service levels during the seasonal slowdown to ensure a strong start to 2025.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.