The lender's new and existing customer products will have new rates tomorrow
NatWest has announced changes to its new and existing customer product ranges, with new mortgage rates available from tomorrow, September 21.
Under its new business range, the lender will reduce rates on selected two- and five-year purchase deals by up to 0.19% and 0.15%, respectively. The purchase tracker rate of two-year 60% LTV product will also be cut by 0.40%.
Selected two- and five-year remortgage deals will have their rates reduced by up to 0.20% and 0.11%, respectively. First-time buyer rates will be lowered by up to 15 basis points (bps) on selected two- and five-year products.
The lender’s shared equity purchase rates are also set to be slashed on selected two-year deals, while Help to Buy shared equity remortgage rates are getting rate reductions of up to 22bps and 19bps on selected two- and five-year options, respectively.
Two- and five-year deals on the buy-to-let, green, and green BTL product ranges – both for purchase and remortgage – will also have their rates cut between 0.11% and 0.31%.
NatWest also announced that it is moving its two-year term end dates from December 31, 2025 to January 31, 2026, and its five-year term end dates from December 31, 2028 to January 31, 2029.
Meanwhile, news agency Newspage sought the views of brokers, who mostly welcomed the rate reductions from one of the UK’s largest mortgage lenders.
“It’s great to see another lender drawing their rates down, in line with the rest of the market,” Darryl Dhoffer of The Mortgage Expert said. “The new business two-year tracker rate at 60% LTV with a reduction of 40bps looks strong, so they may already be pricing in for a base rate rise tomorrow.”
“This is the third large lender this week to reduce their fixed rates, suggesting the rate war is now truly underway,” Steven Hargreaves, mortgage and protection Adviser at The Mortgage Co, added.
“I would expect several other lenders to look to reduce their offerings in the next week or so, meaning mortgages are becoming cheaper, which is fantastic news for all. Another positive step for the fragile housing market.”
Richard Campo, founder of Rose Capital Partners, said it was not surprising that major lenders are cutting rates, with the lower-than-expected inflation figures, falling money markets, and now even a question mark over whether the Bank of England will raise rates tomorrow.
“NatWest are just the first of many that will be doing this in the coming weeks,” he asserted. “Much is the advice we have to give to our clients, as if you sign up for a fixed rate now, it may well be redundant when you come to complete your purchase or remortgage.
“Either going on a floating/variable rate or switching to a better deal come completion will be par for the course until this cycle settles down, which may take quite some time to happen if this sparks a rate war with lenders.”
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, Twitter, and LinkedIn.
