NatWest for Intermediaries has reduced its 2- and 5-year fixed rates by as much as 0.55%.
Yesterday the Bank of Ireland cut its rates while the Coventry Building Society and Principality Building Society have both made cuts.
On the NatWest front rates for new business are reduced by up to 0.47% and 0.54% on selected 2- and 5-year purchase deals.
For remortgage rate reductions of up to 0.55% and 0.50% on selected 2- and 5-year deals will come into play.
On the existing customer front switcher rates are reduced by up to 0.55% and 0.39% on selected 2- and 5-year deals.
Reaction
Amit Patel, adviser at Trinity Finance:
“Christmas is a time for giving and the early signs are that lenders are starting to give and that there is some light at the end of long dark tunnel.
“This will provide a much-needed boost to the budgets of households up and down the country and I expect other high street lenders to make similar announcements in the days and weeks ahead.
Gary Boakes, director at Verve Financial:
“NatWest had been so competitive all year, but due to service levels increased their rates significantly after the mini-Budget.
“With service levels now at seven days, hopefully these rate reductions are just the start for NatWest.
“However, what is disappointing is that there is only one fixed rate product under 5% — a 60% LTV 5-year fixed remortgage.
“With other lenders now reducing rates to under 5%, this seems like a missed opportunity for NatWest. That said, let’s keep the good news and rate reductions coming.
“I have already had conversations with customers whose rates we will be lowering tomorrow. Every little helps in the current climate.”
Justin Moy, managing director at EHF Mortgages:
“While all interest rate reductions are very welcome, NatWest had some ground to catch up with the leading lenders. Most of the announced deals are still in the 5%’s and 6%’s, and current market-leading fixed rates start from 4.65%.
“NatWest has plenty of opportunity to cut rates further. All that being said, those staying with NatWest on a Product Transfer, or looking to port their current mortgage on a purchase, will be delighted.”
Imran Hussain, director at Harmony Financial Services:
“This is welcome news for many in the market looking to purchase their first home or even remortgage.
“To see rate reductions of this kind is fantastic and hopefully a sign of things to come in 2023.
“There’s a chance more lenders will follow suit and look to become more competitive as we head into the New Year.”
Lewis Shaw, owner and mortgage broker at Riverside Mortgages:
“It’s fantastic to see a major High Street mortgage lender reducing rates, and we should all hope this continues and others follow suit.
“With all the bad news and doom-mongers out there, when you cut through the white noise it’s not as bad as some would have you believe.
“It would be amazing if Halifax, Nationwide and Santander made a move in the same direction.
Austyn Johnson, founder at Mortgages For Actors:
“As swap rates (the cost of buying money from the Bank of England), come down a bit, we should start to see rates stabilise across the board.
“Hopefully, this is a sign that lenders will start to see a bit further ahead and bring competition back to the market.
“A little trimming of affordability on both buy-to-let and resi would be a welcome sight.”
Aaron Strutt, product and communications director at Trinity Financial:
“More of the banks and building societies are starting to lower their rates and the hope is that they will come down a bit more over the coming months.
“It will be interesting to see what happens if the purchase market continues to slow and lenders want to drum up a bit more business early next year.”
Chris Schutrups, founder at The Mortgage Hut:
“It’s great to see another lender repricing downwards in the market. This will really help build confidence among potential first-time buyers and home movers, who had all but left the market as a home move seemed unaffordable.
“High Street lenders like NatWest have a huge impact on the lending market and moves like this will only be followed by the smaller and niche lenders.”
Ben Tadd, director at Lucra Mortgages:
“After witnessing rates being cut on a widespread basis over the past few weeks, NatWest reducing their rates spells further good news for mortgage borrowers up and down the country.
“With mortgage lenders now starting to turn their attention to 2023 lending targets, we should be seeing the start of a small price war in the mortgage market.
“With lenders having smashed through their 2022 lending targets much earlier than anticipated this year, mortgage lenders will now be looking to win more and more business in the coming weeks in order to start building their pipelines back up.
“This will ensure they are on track to meet their 2023 lending objectives. As a result, lenders will need to continue pricing their rates more aggressively so as to increase their market share to win the business levels they need to meet their lending targets.”
Anil Mistry, director and mortgage broker at RNR Mortgage Solutions:
“This is great news that another lender is reducing their rates. This has now been a common theme over the past couple of weeks, so it is great to see big lenders like NatWest do the same.
“I feel more lenders will follow what NatWest has done, but more reductions need to happen among the higher loan-to-value products, as opposed to the lower loan-to-value products. If that happens, then it will be a great help to first-time buyers.”
