NatWest has announced rate reductions on its new business, existing customer and additional borrowing product ranges, effective tomorrow.

NatWest will have a 5.04% two-year fix purchase from tomorrow, plus a 4.98% five-year fix.

The lender is making cuts to its buy-to-let new business rates, including the two-year fixed rate purchase at 75% loan-to-value (LTV), which will be cut by 43bps to 4.16%, with a fee of £3,999.

In addition, a two-year fix remortgage rate at 75% LTV will be cut by 6bps to 5.31% with a fee of £995, while a five-year fix at 90% LTV will be trimmed by 17bps to 5.59% with no fee.

This comes after HSBC announced earlier today it would be cutting prices to what brokers believed to be rates within the 4% bracket.

Trinity Financial product and communications director Aaron Strutt says: “We knew a few of the lenders were going to lower their rates this week and there may well be a couple more announcements soon on the back of these price cuts.”

“We are getting close to the end of the year and while funding costs have clearly risen the lenders still need to issue their mortgages to have a strong start to 2027. Hopefully the increased competition and slower market conditions will lead to cheaper mortgages.”

John Charcol mortgage technical manager Nick Mendes adds: “Two-year swap rates have risen from 4.545% to 4.641% over the past month, so NatWest is cutting at a time when its own funding costs are higher, not lower. That signals a clear wish to compete for business, particularly with remortgage demand building as many borrowers come to the end of fixed rates over the coming months.”

“Borrowing costs still sit well above the levels seen earlier this year, so these reductions ease some of the pressure without changing the wider picture, and swap rates will continue to set the direction once markets have digested the Budget.”