NatWest has made changes to its new and existing customer product ranges, efective from tomorrow, Tuesday 5th September.
The lender informed brokers that it would make rate reductions of up to 0.19% and 0.35% on selected 2-year and 5-year purchase deals.
In addition, it made reductions of 0.55% on selected 2-year tracker deals, with remortgage reductions across selected 2-year and 5-year deals.
Other product ranges that benefitted from the reductions included NatWest’s first-time buyer, Help to Buy shared equity remortgage, green and buy-to-let deals.
Nicholas Mendes, mortgage technical manager at John Charcol, said: “What a start to the week!
“HSBC, Accord and now NatWest in the latest battle for top spot.
“With new rates from tomorrow will be interesting to see if any of today’s lenders make another change before the end of the week to stay ahead of the pack.”
Further reaction:
Stephen Perkins, managing director at Yellow Brick Mortgages:
“All these rate reductions are starting to feel like an avalanche.
“Great news all around and they seem to be picking up momentum as they fall.
“No doubt there will be more of these reductions over the week as all lenders follow in a conga line.”
Steven Morris, advising director at Advantage Financial Solutions LTD:
“It seems a magic combo of factors are coming together to reduce mortgage costs, slowly but surely.
“A slowing purchase market, the expected seasonal summer lull and now reducing swap rates (which are now around 0.2% lower than they were in June), are now incentivising lenders, and even those whose service hasn’t been ‘top notch’ in recent times are pricing down.
“HSBC and now Natwest. Whilst the Lloyds Banking Group only repriced last week, it is only a matter of time before their sub-divisions such as Halifax do so again to keep up with the Jones’s.”
Anil Mistry, director and mortgage broker at RNR Mortgage Solutions
“Kudos to NatWest for taking a cue from HSBC and reducing their rates.
“It would be fantastic to see another high street bank follow suit.
“It’s another sign that more banks are eager to do business. Great news for borrowers.”
Lewis Shaw, owner and mortgage expert at Shaw Financial Services:
“With NatWest following hot on the heels of HSBC in announcing new rate reductions, there’s every chance we could see the remaining big four come to the party this week too.
“It would appear that lenders are struggling to get new business, and the rate tap is the only tool they can turn to.
“Perhaps the dire Zoopla and Nationwide HPI data last week, which showed transaction levels plummeting along with house price falls, has many boardrooms concerned, and this is the only response in town that can move the needle.
“Maybe the autumn bounce has just begun.”
Riz Malik, founder and director at R3 Mortgages:
“When HSBC revealed their repricing, I anticipated other lenders would follow suit.
“True to expectation, NatWest has stepped up. Their reduced tracker rates are beneficial for those who foresee rate fluctuations in the future.
“Moreover, they’re revitalising their buy-to-let offerings which will help some struggling landlords.”
Justin Moy, managing director at EHF Mortgages:
“There are plenty of rate reductions from NatWest today, with notable reductions on Tracker products and purchase deals.
“Some of these reductions bring NatWest back in line with the rest of the market.
“I am sure others will follow the lead from HSBC and NatWest later this week.”
Darryl Dhoffer, mortgage expert at The Mortgage Expert:
“Some pretty solid reductions from NatWest across the board.
“Good work, long may other lenders continue following suit.”
Elliott Benson, owner and mortgage broker at Sett Mortgages:
“The downward slide continues, which is great news for borrowers.
“These reductions are seemingly gathering momentum on the high street.
“Hopefully we will see the return of the high 3% fix at some point.”
Rob Heath, director – IronMarket Wealth at Net-Worth NTWRK:
“Following HSBC’s announcement this morning, it was more of a who rather than if another big lender would follow suit and reduce rates.
“I feel this though could be more of a reaction to what a competitor is doing rather than confidence and conviction that we are seeing the end of rate rises.”
Rohit Kohli, operations director at The Mortgage Stop:
“These reductions from major lenders are great news for buyers and sellers alike.
“Hopefully, we’ll have more activity in the property marker especially as traditionally more houses come on the market at this time of year.”
