NatWest has unveiled a number of reductions in its mortgage rates, spanning across various product lines for both new and existing customers, as of 16th January.
This marks the lender’s second rate change for the month, intensifying competition among major High Street banks.
For new purchases, NatWest has reduced rates by up to 0.40% and 0.36% on its 2-year and 5-year deals, respectively. Remortgage rates have been cut by up to 0.35% and 0.69% on similar terms. The lender has also focused on first-time buyers, lowering rates by up to 0.40% and 0.36% on 2-year and 5-year deals.
The rate reductions extend to shared equity purchases and remortgages, with cuts of up to 0.18% and 0.25% for 2-year and 5-year deals, and up to 0.20% and 0.69% for
help to buy shared equity remortgages. In the buy-to-let sector, both purchase and remortgage products see rate reductions up to 0.41% and 0.48% for selected terms.
Significant rate reductions are also noted in green mortgage products, aligning with market demand for environmentally friendly options. For green purchases, rates are down by up to 0.36% and 0.31%, while green remortgages see decreases up to 0.20% and 0.69% for selected terms.
Existing customers are not left behind, with switchers enjoying rate cuts of up to 0.25% and 0.79%, and buy-to-let switchers seeing reductions up to 0.50% and 0.40% on selected terms.
Reaction
Richard Jennings CeMAP, founder & managing director at Richard Jennings Mortgage Services:
“This is another terrific update on pricing from another of the big six lenders. These price cuts are certainly making their way through to the consumer, too. We’re definitely seeing optimism return to borrowers with both mover and remortgage enquiries increasing materially over the past couple of months. Things are really looking to be on the up and if we have a positive inflation print they could improve further. Conversely, for product transfers, it’s creating some rework due to our rate watch promise to clients.”
Amit Patel, adviser at Trinity Finance:
“Great news for borrowers after the turmoil in 2023. All high street lenders except Nationwide have announced rate cuts in 2024. Over to you now Nationwide.”
Katy Eatenton, mortgage & protection specialist at Lifetime Wealth Management:
“Well, it definitely isn’t a blue Monday in the mortgage world, with two of the High Street banks reducing rates for the second time this year. This will pile on the pressure for the others to follow suit, especially Nationwide, who haven’t repriced this year yet.”
Justin Moy, managing director at EHF Mortgages:
“NatWest has reduced rates for the second time this year, showing how keen they are to lend and reflecting the improvement in SWAP rates. Having more lenders sub-4% on some fixed deals is essential to spread the load and keep service levels decent across the industry. Great news for borrowers.”
Lewis Shaw, owner and mortgage expert at Shaw Financial Services:
“The continued downward march of rates can only be positive and will force other lenders to follow suit. If we get more positive inflation data on Wednesday, we could see another round of rate reductions soon after, which could spark an even bigger influx of buyers to the market.”
Anil Mistry, director and mortgage broker at RNR Mortgage Solutions:
“HSBC kicked things off, and now NatWest’s leaping into the fray with gusto — a proper game-changer for anyone itching to relocate, snag their inaugural pad, or switch up their mortgage. It’s a brilliant turn of events, injecting a hefty dose of optimism into the mortgage market. I’m banking on more High Street heavyweights joining this scuffle soon. After all, who’d want to miss out on a juicy piece of the action? The message is clear: the mortgage scene’s heating up, and the competition’s fierce, and not before time.”
Darryl Dhoffer, mortgage expert at The Mortgage Expert:
“The fight for mortgage supremacy in the UK continues, and NatWest just threw a right hook straight from the corner. In recent weeks we have seen other lenders battle it out with a slugfest of rate decreases. NatWest lands another blow, slashing rates on select fixed deals. Keeping up with repayments is key, and rising housing prices could put even the nimblest fighters on the canvas.”
Riz Malik, founder & director at R3 Mortgages:
“It’s rate reductions across the board (e.g. purchase, remortgage and buy to let) that we would like to see and Natwest’s cuts are a good example of this. Do two rate reductions 11 days apart constitute a rate recession? Also, Nationwide, Nationwide, wherefore art thou Nationwide?”
Gary Bush, financial adviser at MortgageShop.com:
“To see another High Street lender dropping some of their rates into the 3% arena is music to the ears of mortgage account holders looking to remortgage, and for First-Time-Buyers. With household budgets strained to the maximum throughout 2023 both the money market and lenders opting for a continued lower rate environment will ease some pressure. With estate agents also reporting drastically increased property viewing numbers the storm could well be about to pass for the industry.”
Elliott Culley, director at Switch Mortgage Finance:
“NatWest have made moves to keep in touch with the other lenders making headlines with lower mortgage rates. It’s good to see more lenders dropping their rates and as this provides more clients the opportunity to secure a better rate. This is the second time this year NatWest have reduced which shows how competitive this market is right now.”
Rita Kohli, managing director at The Mortgage Stop:
“Another welcome reduction, and for the second time this year NatWest showing a clear indication that it’s primed and ready to lend. This competition amongst the big high street lenders is great for borrowers given where we were just 6 months ago. With more properties coming onto the market as well it looks like this first quarter could be a positive one for the UK housing market.”
Rob Gill, managing director at Altura Mortgage Finance:
“These rate cuts from NatWest are another welcome move in the ongoing rate war between lenders competing for business. The recent cuts on either side of Christmas were sparked by lower-than-expected inflation figures in December. With the next set of figures due this week on Wednesday 17th, lenders and borrowers will be watching closely, hoping for a further fall in inflation and more rate cuts as a result.”
Laura Bairstow, founder at The Mortgage Masters:
“Great news for homeowners and first-time buyers alike to see yet another big lender jump on the rate war bandwagon and reduce their rates across their whole product ranges. Let’s hope they don’t follow in the footsteps of the Co-op with their ‘blink and you miss it’ offering of reduced products being pulled after just three days. Fingers crossed that these rate reductions are sustained and the downward trend continues.”
Charles Breen, founder at Montgomery Financial:
“This year has been marked by almost damascene changes of heart from lenders relative to what we endured just a short 12 months ago. We are on the cusp of all 2-year deals starting with a 3. It’s now just a matter of when, and who will be brave enough to do it first.”
