NatWest is set to make rate changes to both its new and existing customer product ranges, effective from tomorrow, Thursday 28th September.
In its new business range, the lender introduced rate reductions of up to 0.21% and 0.22% across selected 2-year and 5-year purchase deals, while its 2-year and 5-year remortgage deals will see a reduction of up to 0.17% and 0.24%.
For first-time buyers, there will also be rate reductions of up to 0.25% and 0.22% on selected 2-year and 5-year products.
The lender also introduced rate cuts across its shared equity purchase, Help to Buy shared equity remortgage, Green purchase and Green remortgage ranges.
In addition, NatWest launched 10 new products covering 2-year and 5-year deals from 60% loan-to-value (LTV) to 90% LTV, with a £1,495 fee, along with 20 remortgage products covering 2-year and 5-year deals, from 60% LTV to 90% LTV, with a £1,495 fee.
Rate changes for existing NatWest customers included a reduction of up to 0.29% and 0.24b% on selected 2-year and 5-year Switcher deals, as well as up to 0.20% and 0.16% on selected 2-year and 5-year buy-to-let switcher deals.
Reaction:
Nicholas Mendes, mortgage technical manager at John Charcol:
“NatWest is following hot on the heels of other lenders with this rate reduction.
“This follows Nationwide, Santander and HSBC making similar moves in the past week.
“Some competitive repricing will see them be the next lender to break the 5% barrier!”
Riz Malik, founder and director at R3 Mortgages:
“Natwest’s reductions are welcome as lenders continue to reprice fixed rates downwards.
“Additionally, 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.”
Justin Moy, managing director at EHF Mortgages:
“More rate cuts on the High Street, and this time NatWest has joined the party with some significant reductions across its residential and buy-to-let ranges.
“Existing borrowers will also feel the benefit, which is important.
“For those looking for a new deal, take these options while you can as rates can quickly increase if we have some difficult UK inflation or wider economic data to deal with in October.”
Lewis Shaw, owner and mortgage expert at Shaw Financial Services:
“Lenders are dropping their rates at breakneck speed in an attempt to stimulate activity and boost their market share.
“With Nationwide, HSBC, Santander and Virgin all reducing this week, the question on everyone’s lips is, when do Halifax join the race?
“Yes, rates are still higher than brokers and clients would prefer but each reduction is a step in the right direction.”
Craig Fish, director at Lodestone Mortgages & Protection:
“It’s interesting that NatWest has now seen the light, and offered their cheaper products to brokers, too.
“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.”
Elliott Culley, director at Switch Mortgage Finance:
“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.
“It all feels a bit too cautious right now.”
Steven Hargreaves, mortgage and protection adviser at The Mortgage Co:
“This is more evidence of the interest rate war that is starting to rage.
“We welcome reductions in rates and hope the current level of competition means cheaper mortgages for all.
“For NatWest, it is the second round of rate reduction in just 7 days, showing they are keen to secure the business going into the fourth quarter of the year.”
Graham Cox, founder at Self Employed Mortgage Hub:
“Mortgage rates and inflation seem to be in a battle to see which can fall the fastest at the moment.
“Natwest’s latest round of reductions, including remortgages, is another huge boost to a battered and bruised housing market, and will provide welcome relief to homeowners coming to the end of their deals.”
