NatWest has launched a second round of selected rate cuts for new and existing residential borrowers in a week of up to 45 basis points.
Highlights of the high street bank’s reductions, which come to market today (16 August), include:
New Business
Residential
Two-year fixed-rate purchase
- 60% LTV, decreasing by 30bps to 6.19%, with no product fee
Two-year fixed-rate remortgage
- 90% LTV, decreasing by 24bps to 6.54%, with no product fee and £250 cashback
Five-year fixed-rate purchase
- 95% LTV, decreasing by 45bps to 6.39%, with no product fee
First Time Buyer
Two-year fixed-rate purchase
- 85% LTV, decreasing by 28bps to 5.44%, with a £995 product fee and £250 cashback
Shared Equity
Two-year fixed-rate purchase
- 60% LTV, decreasing by 25bps to 5.37%, with a £995 product fee and £250 cashback
Existing Customer
Residential
Two-year fixed-rate switcher
- 75% LTV, decreasing by 9bps to 6.04%, with a £995 product fee
Five-year fixed-rate switcher
- 60% LTV, decreasing by 14bps to 5.44%, with a £995 product fee
- 75% LTV, decreasing by 10bps to 5.69%, with no product fee
- 75% LTV, decreasing by 9bps to 5.49%, with a £995 product fee
The move follows the Bank of England’s base rate rise by 25bps to 5.25% earlier this month, its 14th consecutive rise taking it to the highest level for 15 years.
The central bank is battling inflation, which today dropped to 6.8% in the year to July from 7.9% in June, but still remains almost three-and-a-half times higher than its 2% target.
However, lenders say swap rates have fallen from their early July peak, allowing many of them to cut rates.
Halifax, Nationwide, HSBC and TSB are among other major lenders to have cut their fixed-rate home loans last week.
