"There were concerns that rate cuts might be slowing down following last week's 'hold' decision from the Bank of England. However, NatWest has clearly got other ideas. "
- Riz Malik, independent financial adviser at R3 Wealth
From tomorrow, NatWest is making changes to its new business product range, which includes rate decreases of up to 12bps on residential purchase deals and 60bps on buy-to-let loans.
In its core residential range, two-year fixed rates have reduced by up to 12bps, starting from 4.02% at 60% LTV with a £1,495 fee, 4.07% with a £995 fee and 4.28% fee-free.
Two-year fixes now start from 4.25% at 75% LTV, 4.76% at 80% LTV, and 4.52% at 85% LTV. A fee-free 90% LTV two-year fix has reduced to 5.35% and a 95% LTV rate to 5.68%.
Two-year fixed rate remortgage products now start from 4.18% at 60% LTV, 4.40% at 75% LTV, 4.78% at 80% LTV, 5.06% at 85% LTV, and 5.53% at 90% LTV.
Two-year tracker products have also decreased by 12bps from 60% - 90% LTV.
Five-year fixed rates have also decreased by up to 0.12% and now start from 3.77% at 60% LTV with a £1,495 fee. At 75% LTV, five-year fixes start from 3.90%, rising to 4.12% at 80% LTV and 4.18% at 85% LTV.
Five-year remortgage products have reduced to start from 3.82% at 60% LTV, 3.99% at 75% LTV, 4.38% at 80% LTV, 4.45% at 85% LTV, and 4.97% at 90% LTV.
First-time buyer products have reduced by 12bps at 85% and 90% LTV, while shared equity products are down by up to 12bps at 60% and 75% LTV.
Buy-to-let
In NatWest's buy-to-let range two-year fixed rate mortgage products have decreased by up to 0.60%, with the largest cut to a 75% LTV product, down to 4.16% with a £3,499 fee. At 60% LTV, rates now start from 3.69% with a £3,499 fee.
Two-year fixed rate remortgage products have reduced by up to 47bps. At 60% LTV, rates now start from 3.93%, rising to 4.36% at 75% LTV.
Five-year buy-to-let purchase rates are decreasing by up to 32bps, now available from 4.28% at 60% LTV and 4.32% at 75% LTV with a £995 fee.
Five-year remortgage rates are down by up to 42bps, with the lowest rate at 60% LTV now 3.90% and 70% LTV rates starting from 4.25%.
In addition, selected residential and buy-to-let green mortgage rates have decreased by up to 40bps.
Broker views
News agency Newspage asked brokers whether this new round of rate cuts is surprising following last week's rate hold by the Bank of England and whether we can expect rate cuts to continue.
Riz Malik, independent financial adviser at R3 Wealth, commented: "There were concerns that rate cuts might be slowing down following last week's 'hold' decision from the Bank of England. However, NatWest has clearly got other ideas. It has started another week with rate cuts across its mortgage range. This should inject further confidence into the UK housing market, and bring further relief to mortgage holders before the Halloween Budget."
Darryl Dhoffer, mortgage broker at The Mortgage Expert, said: "It's good to see another high street lender trim their mortgage rates, although NatWest have lagged behind other major high street lenders who had already priced in previous swap rate reductions. This is good for the consumer, for sure, however we may be in a stagnant period particularly if UK inflation continues to be stubborn, the Bank of England hold rates again when they next meet and swap rates don't keep falling."
Dariusz Karpowicz, director at Albion Financial Advice, added: "The trend continues, and that’s definitely good news for consumers and the housing market. You’d think there might be a cooling-off period after the Bank of England decided to hold the base rate, but it seems lenders like NatWest are still full steam ahead with rate cuts. With decreases of up to 60bps on buy-to-let deals, it's clear they’re keen to keep the momentum going. It’s a welcome relief for borrowers, especially with the high-value and green products also getting some attention. Let’s hope this positive trend continues and gives the market the boost it needs."
