"After months of rate hikes, this is the light at the end of the tunnel we've all been waiting for."
NatWest has reduced two and five-year fixed rate mortgage products by up to 0.65%.
Across its residential purchase range, rates will reduce by between 37-65bps on two and five-year deals.
Remortgage products have been cut by up to 45ps and 65bps on selected two and five-year products and frst-time buyer rates have reduced by 37ps and 55bps across 90% LTV two and five-year deals.
Newspage sought the views of brokers amid the ongoing 'lender rate war'.
Craig Fish, director at Lodestone Mortgages & Protection, said: "Another of the big lenders is reducing the prices following what I consider to be an overzealous reaction to the Bank of England's decisions. I firmly believe that most lenders are overpriced, merely to control workloads, while they adopt a 'wait and see what our competitors do' attitude. This has had a negative effect and has resulted in greatly reduced mortgage transactions, while lenders still have lending targets to achieve. These moves are a step in the right direction, towards where rates should have been, but I think the real rate war will commence when we see the inflation data that will be released next week, providing it continues to move in the right direction. Lenders may then be able to get their targets back on track."
Lewis Shaw, owner and mortgage expert at Shaw Financial Services, commented: "After months of rate hikes, this is the light at the end of the tunnel we've all been waiting for. While the mortgage and property market aren't out of the woods, at least we're travelling in the right direction. With the rate cuts by Nationwide, HSBC, TSB and Halifax, it was already hotting up for a rate war. Now that NatWest has thrown its hat in the ring, other lenders will follow. Get set for some fixed-rate fisty-cuffs as mortgage lenders battle it out for market share. If we see positive inflation data next Wednesday, expect more of this. I wouldn't be surprised if rates are high 4s to low 5s by the end of the year."
Riz Malik, founder and director at R3 Mortgages, added: "This week is getting better and better. With NatWest now joining the ranks of Halifax and HSBC, those lagging behind will likely reconsider their offerings. This is great news for those currently seeking mortgage financing. August is certainly turning out to be the best month for the mortgage market yet."
