NatWest and Halifax have both announced further fixed rate cuts, with NatWest reducing its buy-to-let purchase rates by up to 1.06%.
NatWest is now offering a residential two-year fixed remortgage from 4.87% with a £1,495 fee (or £995 if it qualifies for a green deal), and a 5.64% five-year fixed with no fee for purchase at 95% LTV.
NatWest's purchase rates have reduced by up to 30bps and its remortgage rates are down by up to 40bps.
Halifax have announced up to 0.72% off selected two and five-year fixed rates across first-time buyer, new build, large loans and shared equity/shared ownership products, alongside the equivalent green home products.
Broker PR platform Newspage asked advisers for their views on the latest round of rate cuts.
Ken James, director at Contractor Mortgage Services, said: "Once more into the breach the UK's banks go. The rate war drum is now becoming louder by the day. Rates are coming down around our ears, which for borrowers is fantastic news as long as they have not passed the point of no return in their mortgage process. After rate cuts from Barclays that will take effect from Tuesday, we now have Halifax and Natwest announcing reductions. There is a real frenzy among lenders fighting for every scrap of business they can get as they head towards the end of the year. I am getting calls and emails daily from clients understandably asking me to check and double-check to see if they can squeeze an extra bit of savings from the deals already secured. I wonder when the drums will silence."
Justin Moy, managing director at EHF Mortgages, commented: "Just when you think lenders may have run our of margin to play with, two or three of the big players suddenly dig deeper into their pockets and find some more to give away. NatWest have pushed their headline two-year fixed remortgage deal to 4.87% with either a £995 or £1495 fee for those with 40% equity in their homes, but there is even a reasonably priced five-year fixed rate at 5.64% for those purchasing with a 5% deposit. It's clear that lenders are desperately trying to fill their application numbers ready for 2024, even if profit margins are being severely squeezed as a result."
Stephen Perkins, managing director at Yellow Brick Mortgages, added: "These are substantial rate reductions from two of the largest mortgage lenders, which are a sign of the growing confidence in the rate forecasts and also an element of fighting hard for the lion's share of deals yet to be agreed in 2023. With all lenders behind on annual lending targets, there is no doubt a real appetite to ensure they maximise their lending volume before the year comes to a close."
