Starting 8th September, NatWest will reduce rates on a variety of mortgage products for new and existing customers.
For new business, rates on purchase mortgages will be cut by up to 0.18% and 0.10% on selected 2-year and 5-year deals.
Remortgage rates will be reduced by up to 0.12% and 0.09% on 2-year and 5-year plans. First-time buyers will see rates cut by up to 0.15% and 0.04% on 2-year and 5-year deals.
Shared equity purchases will have rate reductions of up to 0.28% and 0.20% on 2-year and 5-year offers.
Green purchase and remortgage plans will have rate cuts of up to 0.18% and 0.12%, and 0.10% and 0.09% respectively on 2-year and 5-year deals.
For existing customers, switchers will see rate cuts of up to 0.30% and 0.09% on 2-year and 5-year plans.
Buy-to-let switchers will see rate cuts of up to 0.15% and 0.20% on 2-year and 5-year deals.
Reaction
Nick Mendes, mortgage technical manager, John Charcol:
“NatWest has yet another issued another rate change in just a matter of days.
“The last rate change was minimal in comparison to competitor rates on the market but in light of the Bank of England Governor’s comments yesterday and Swaps reducing slightly, have clearly motivated NatWest to pass on further reductions.
“Another repricing was always on the cards, and based on the further percentages wouldn’t be surprised if we see further notice from NatWest by the end of next week.”
Lewis Shaw, owner and mortgage expert at Shaw Financial Services:
“It’s odds on that the dominos will now start to fall as lenders wrestle for position at the top of broker rate tables, desperate to get new business through the front door.
“Expect more of this to follow next week as demand shrinks and lenders become more sharp-elbowed in the hope of hitting their lending targets.”
Jamie Lennox. director at Dimora Mortgages:
“The domino effect is in full swing with lenders and their rate reductions. With swap rates continuing to fall, and some positive comments from the Governor of the Bank of England, we could see more and more lenders follow suit in the days to come.
“Consumers still need to be cautious about holding off too long to secure a rate as the outlook can change with a flick of a switch.”
Justin Moy, managing director at EHF Mortgages:
“Just a few days since their last repricing, this is evidence that the rate chase is well underway. The high street lenders are definitely trying to lead the best buy tables and grab more market share.
“It will take much deeper rate reductions to make a real difference but any improvements are welcome.”
Craig Fish, director at Lodestone Mortgages & Protection:
“Dare we say the words, ‘rate war’? Another lender reducing rates, especially considering it’s the second time this week for this lender, is certainly a sign that one may be on the horizon as lenders realise they are a long way short of their lending targets for the year.
“Expect more of the same over the next couple of weeks in light of the positive comments from Andrew Bailey yesterday.”
Charles Breen, founder & director at Montgomery Financial:
“Another big six lender continuing the rate reductions after announcing further rate reductions, following suit from others who have also done similarly over the past week or so.
“Yes, it’s a relatively small reduction in rates, but a reduction nonetheless and is an indication of travel for the future.
“This can only be a positive and with swap rates continuing to fall, hopefully we will see more positive news like this.
Ranald Mitchell, director at Charwin Private Clients:
“More movement from NatWest, the latest in a long line of reductions, with the big players jostling for the top spot on the leaderboard.
“NatWest is playing catch up here with the current low loan-to-value, 2-year fixed rate leaders, Santander and Leeds Building Society. Would like to see them push harder than this, going for first place rather than merely catching up.”
