"While it's good to see lenders all reducing rates, I am still waiting for a lender to break cover with their new rates and provide something to make advisers really sit up and take notice."
NatWest has announced further reductions across its residential mortgage range for both new and existing customers.
Available from today, purchase rates will reduce by up to 0.22% on selected two and five-year deals, while remortgage rates are down by up to 0.24% and first-time buyer rates have decreased by up to 0.25%.
Shared equity purchase products have decreased by up to 0.22% and Help to Buy remortgage rates are down by 15bps.
In addition, green purchase rates have reduced by up to 0.20% and green remortgage rates are down by up to 0.17%.
For existing customers, switcher rates have decreased by up to 29bps and buy-to-let switcher rates are down by up to 20bps.
Alongside the changes, NatWest has launched 10 new purchase products and 20 new remortgage products covering two and five year deals from 60% to 90% LTV with a £1,495 fee.
Newspage asked brokers for their views on the latest changes.
Justin Moy, founder at EHF Mortgages, said: "More rate cuts on the High Street, and this time NatWest has joined the party with some significant reductions across its residential and buy-to-let ranges. Existing borrowers will also feel the benefit, which is important. For those looking for a new deal, take these options while you can as rates can quickly increase if we have some difficult UK inflation or wider economic data to deal with in October."
Lewis Shaw, founder of Shaw Financial Services, also welcomed the news: “Lenders are dropping their rates at breakneck speed in an attempt to stimulate activity and boost their market share. With Nationwide, HSBC, Santander and Virgin all reducing this week, the question on everyone's lips is, when do Halifax join the race? Yes, rates are still higher than brokers and clients would prefer but each reduction is a step in the right direction.”
But Elliott Culley, director at Switch Mortgage Finance, said the current round of rate cuts are a little too cautious: “While it's good to see lenders all reducing rates, I am still waiting for a lender to break cover with their new rates and provide something to make advisers really sit up and take notice. It all feels a bit too cautious right now.”
Meanwhile, Riz Malik, director of R3 Mortgages, was bittersweet: “NatWest's reductions are welcome as lenders continue to reprice fixed rates downwards. Additionally, it would be commendable if there was a commitment from the lender to ensure that better rates are not provided to those who refrain from seeking advice.”
Craig Fish, managing director at Lodestone, agreed: “It's interesting that NatWest has now seen the light, and offered their cheaper products to brokers, too. I expect we will see much more of this competition over the coming days. What is disappointing, though, is that none of these lenders are offering sub-5% deals for remortgage clients. This is where we really need to see some reductions because it's going to take much bigger rate reductions to reignite the purchase market.”
Steven Hargreaves, mortgage adviser at The Mortgage Co, concluded: “This is more evidence of the interest rate war that is starting to rage. We welcome reductions in rates and hope the current level of competition means cheaper mortgages for all. For NatWest, it is the second round of rate reductions in just 7 days, showing they are keen to secure the business going into the fourth quarter of the year.”
