NatWest has made a wave of fixed-rate mortgage reductions showing that the high street competition over the past few weeks isn’t showing any signs of stopping.
Free UK news agency, Newspage, sought the views of brokers. Here’s what they had to say.
Peter Stamford, director and lead adviser at Moor Mortgages:
“For the second time in five days, NatWest is vying for market share, delivering wins for borrowers with rate cuts across the residential sector. While the market buzzes with plummeting rates, there’s a risk borrowers may adopt a wait-and-see stance, anticipating even lower rates.
“It seems Tuesday’s wage uptick data isn’t deterring lenders, especially with anticipated positive inflation outcomes. As the month progresses, expect more aggressive moves from high street lenders, signalling strong lending and buying appetite.”
Jamie Alexander, mortgage director at Alexander Southwell Mortgage Services:
“Hopefully, these decreases continue over the next few weeks. The big lenders are now actively competing for the lion’s share of the market. Many borrowers will benefit from this so fingers crossed it continues.”
Gary Boakes, director at Verve Financial:
“With lenders now realising that their hasty rate increases in June had killed the purchaser market, they are all backtracking and lowering rates, which is great, but it feels like they could be doing more if they really want to get people back out looking.
“But as always, good news and any rate reductions are welcome in this current market.”
Justin Moy, managing director at EHF Mortgages:
“Yet more positive news from the high street lenders, who are all fighting for market share, and the benefits will be felt by borrowers.
“These particular cuts by NatWest are for all types of residential lending, buy-to-let, and for existing clients, so many will feel the value of them.”
Lewis Shaw, owner and mortgage expert at Shaw Financial Services:
“NatWest has been off the boil for so long that they have to price aggressively to get any sort of volume of new business through their doors, which is fantastic news for consumers looking to buy or needing to remortgage.
“Moreover, anyone out there with a NatWest mortgage offer in their hands should be getting on the phone with their broker to see if they can benefit from the second reduction by a big six lender in as many weeks, before their completion date.”
Ranald Mitchell, director at Charwin Private Clients:
“It is heating up at the sharper end of the market and how low will they go? My only concern is that whilst market rates tumble, borrowers will not jump at the opportunity, reverting to the wait-and-see approach, hoping that they will drop further.
“This is where brokers can provide appropriate reassurance in between re-broking their entire sales pipelines.”
James Miles, director – mortgage adviser at The Mortgage Quarter:
“Life is a rollercoaster, and you just gotta ride it. Doesn’t look like the increase in wages is putting off lenders fighting for Top of the Pops.
“This is great news from a big lender who is clearly expecting positive inflation results this week.
“There’s still some time on the ride this year but let’s take the wins and hope rates settle down from their inflated spikes.”
Elliott Benson, owner and mortgage broker at Sett Mortgages:
“As I kept saying, race to the bottom, there is definitely an appetite for lending and also one for buying. More to come from the high street lenders as we get to the end of the year.”
Ben Tadd, director at Lucra Mortgages:
“Despite this morning’s news surrounding accelerating wage growth, the markets have continued, so far at least, to react positively, with lenders still coming out and slashing their rates.
“If the inflation data being released tomorrow is as positive as anticipated, the mini-rate war we are witnessing may well spiral on, regardless of whether the Bank of England crumbles to pressure to raise interest rates further in the light of Tuesday’s wage growth data.”
