The lender is cutting prices across its new business, existing customers and additional borrowing products.

It follows reductions from HSBC and a number of other lenders last week.

On Friday, Moneyfacts revealed that average fixed rates had edged downwards week on week for the first time since the outbreak of war in Iran at the end of February.

The rate cuts at NatWest are extensive, covering purchase, remortgage and product transfer for landlords and owner occupiers.

Its biggest reduction is to a fee-free five-year fixed rate for residential house purchase at 95% loan-to-value, which is falling by 37bps from 5.76% to 5.39%.

Scores of other products are being reduced and many of the price cuts are more than 20bps.

Trinity Financial product and communications director Aaron Strutt says: “NatWest is lowering its tracker margins as well as its fixes, which is nice to see because some other lenders have raised their trackers just as they have become more popular.

“NatWest is reducing its two-year fix from 4.75% to 4.65%, undercutting Nationwide’s current best-buy deal of 4.66%.

“The mortgage market is still in a difficult situation, given the latest news from the Middle East.

“Hopefully we will get more price reductions over the coming days, and no doubt Nationwide will be keen to undercut NatWest again pretty soon.”