NatWest makes “encouraging” changes to new business mortgage products

NatWest has made a series of changes to its new business mortgage range, including rate decreases across 5-year and 2-year deals.

The changes will come into effect from tomorrow (21st March 2024).

For purchase mortgages, NatWest made rate decreases of up to 0.07% on selected 5-year deals, but for tracker purchase mortgages it increased rates of up to 0.40% on selected 2-year deals.

Shared equity purchase rates were decreased by up to 0.07% on selected 5-year deals, and Help to Buy shared equity remortgage rates were decreased by up to 0.13% on selected 5-year deals.

NatWest decreased remortgage rates by up to 0.24% on selected 5-year deals.

Green purchase rates decreased by up to 0.07% on selected 5-year deals, and green remortgage rates decreased by up to 0.13% on selected 5-year deals.

Newspage asked brokers for their thoughts on the changes.


Justin Moy, managing director at EHF Mortgages:

“It’s great to see an immediate response to the improved inflation figures this morning, with NatWest leading the way with improvements to many of their fixed rate deals.

“This slams the brakes on rate increases for the moment.

“But the tracker rates increasing by up to 0.40%? Is that NatWest looking to grab more profit in readiness of some base rate cuts on the horizon?”

Andrew Montlake, managing director at Coreco:

“NatWest have been quick off the mark in reducing their product rates after the good inflation news today.

“We have already seen some downward movement in SWAP rates, which could help to reignite the competition between lenders we saw at the start of the year.

“This will be a much-needed boon to borrowers and house hunters alike and will hopefully put pressure on the Bank of England to cut rates sooner rather than later.

“It is now time for brave decisions to get ahead of the market.”

Stephen Perkins, managing director at Yellow Brick Mortgages:

“It’s great to see NatWest wheel out the first of hopefully many lender rate reductions this week following the better than expected inflation data this morning.

“It is shaping up to be a positive week for the mortgage market.”

Ben Tadd, director at Lucra Mortgages:

“NatWest are the first big bank to act following the positive inflation numbers released this morning.

“This is welcome news for mortgage borrowers across the country who will now be sat in positive anticipation, waiting for other lenders to drop their own rates, too.

“Here’s hoping this could be the start of a new rate war in the mortgage market.”

Rohit Kohli, director at The Mortgage Stop:

“Anxious borrowers will see a little light at the end of the tunnel with news that one of the country’s biggest lenders has reduced rates just hours after inflation fell to its lowest level since September 2021.

“All eyes are now on tomorrow’s rate decision, but the cautious approach on Threadneedle Street is set to dampen any hopes that today has created.”

Ben Perks, managing director at Orchard Financial Advisers:

“NatWest are poised to pounce ahead of the Bank of England’s announcement tomorrow.

“They are the first lender to reduce following the positive news this morning that inflation dropped further than expected.

“It’s great to see how positive data can drive immediate change with lenders.

“If the Bank of England are brave enough to reduce tomorrow, we could see reductions ripple across the industry.”

Anil Mistry, director and mortgage broker at RNR Mortgage Solutions:

“It’s encouraging to see a major lender lower its fixed rate, and you have to hope that other big lenders will follow suit.

“However, it is intriguing to observe NatWest’s decision to raise the prices of tracker products, especially when these are experiencing a surge in demand.”

Lewis Shaw, owner and mortgage expert at Shaw Financial Services:

“It’s been so long since we’ve seen a rate reduction that I’d forgotten what they looked like and how I felt about them.

“Hopefully we’ll see more of this after the positive inflation data this morning.

“It all now hangs on the Bank of England meeting tomorrow, so if we get positive words from Governor Bailey, that could precipitate an avalanche of rate reductions and kickstart the spring property market bounce.”

Gary Bush, financial adviser at

“A very strategic move from Natwest in jumping straight in with both feet after the better-than-expected inflation data of this morning, decreasing some of its mortgage rates by up to 0.24%.

“This will see competitor lenders to follow suit and we expect some opening salvos in response shortly.

“This is exactly the news that UK households needed to ease their household budgets. We live in hope that the Bank of England follows with at least a .25% cut to the base rate tomorrow as an early Easter present to already stretched property owners.”

Elliott Culley, director at Switch Mortgage Finance:

“Inflation falling more sharply than forecast will breathe new life into the mortgage market, which has been stagnant for a month now.

“NatWest are the first to show their hand with some rate reductions to 5-year fixed products.

“Ideally I would like to see reductions across the range, but this is a positive start and other lenders will follow suit.”

Robert Timm, managing director at Sunland Mortgages:

“Hallelujah! This is music to the ears of borrowers.

“After weeks of solid rate increases, one of the big six is willing to put down its 5-year fixed rates.

“Hopefully this is the start of things to come and will energise the mortgage and property market.”

Bob Singh, founder at Chess Mortgages:

“This morning’s CPI figures, coupled with the expectation that inflation will fall to around 2%, has prompted lenders to re-think the recent increases imposed on borrowers.

“NatWest is out of the blocks this morning with rate cuts across the board but, noticeably, has increased margins on tracker deals.

“All eyes are now on the Bank of England’s decision tomorrow when rates are likely to be held at 5.25%. Other lenders are likely to follow suit.”

Gareth Davies, director at South Coast Mortgage Services:

“NatWest are first out of the blocks after today’s inflation announcement.

“However, with no major lender predicting an imminent base rate reduction, is the increase on their tracker margins a ploy to make some more money off of sentiment alone, with no real justification behind it?

“Unless they know something we don’t about tomorrow’s likely decision?”

Mike Staton, director at Staton Mortgages:

“It appears the UK has been bracing itself for this groundbreaking moment, with all but 1-year swap rates under 4%.

“I fully expect to see the Bank of England to reduce the base rate within the next 3 months, which will spark a domino effect across most major lenders as they return to the market with ultra [competitive] rates.

“The only negative I see is the current government will surely use this as a win and spin it as a success story ahead of a general election when they have done very little to ease the burden on extremely high costs to the UK public.

“With NatWest so quick off the mark, it shows they were confident in the inflation decrease [occurring] today and I don’t think we will be waiting long for other major lenders to join the market with further reductions.”

Scott Taylor-Barr, principal adviser at Barnsdale Financial Management:

“This is a mixed bag of rates going up and down.

“Great if you are looking at a 5-year fixed rate but not so good if you want a 2-year deal.

“A gold star for NatWest sending this email out early in the day too, not at 4pm like some others, but a mark in the copy book for asking brokers to work until 10:30pm.

“Whilst it sounds great that rates are available on the system until that time, it also means that the expectation is for brokers to cancel their personal lives to sit at their desks keying cases.

“No NatWest staff will be at their desks to support brokers at this time.

“It would have been better to see the cut off being midday on the 21st rather than nearly midnight on the 20th.”

Dariusz Karpowicz, director at Albion Financial Advice:

“NatWest is shaking things up with rate cuts on mortgages, sparking hope for a trend that others might join. In a move that could change the game, they’ve announced reductions effective March 21st, inspired by today’s drop in Sonia swap rates, thanks to lower inflation news.

“This could mean more savings in your pocket and a brighter outlook for borrowers. Fingers crossed that this starts a positive ripple effect across the lending world.”

Ken James, director at Contractor Mortgage Services:

“NatWest step into the spotlight with the first rate cut off the back of the newly released Inflation figures.

“The rate reductions are not massive, more like a tentative shuffle forward, but a reduction nonetheless.

“What we now want to see is the rest of the lenders reacting in a [similar] fashion.

“Will they come forward or will they lurk in the shadows until after the base rate decision [tomorrow]?

“We need to see if this is the first domino that will fall setting off a much needed chain reaction.”