NatWest has announced a series of rate cuts across its residential and buy-to-let mortgage ranges.
Available from 5th September, residential purchase products will reduce by up to 35bps and tracker rates by up to 55bps.
Remortgage fixed rates have lowered by up to 8bps and tracker rates by up to 46bps.
In addition, first-time buyer products are down by up to 19bps with green purchase and remortgage deals cut by up to 6bps.
In Natwest’s buy-to-let range, purchase rates are being reduced by up to 35bps and remortgage rates by up to 25bps. Green buy-to-let products will also reduce by up to 22bps.
These mortgage rate cuts from NatWest come hot on the heels of HSBC, which also announced reduction in rates across it range earlier today.
Brokers largely welcomed the news from both HSBC and NatWest and hoped other major UK players would continue the trend in rate cuts further.
Yellow Brick Mortgages managing director Stephen Perkins said: “All these rate reductions are starting to feel like an avalanche. Great news all around and they seem to be picking up momentum as they fall. No doubt there will be more of these reductions over the week as all lenders follow in a conga line.
Advantage Financial Solutions director Steven Morris says: “It seems a magic combo of factors are coming together to reduce mortgage costs, slowly but surely”.
He adds: “A slowing purchase market, the expected seasonal summer lull and now reducing swap rates (which are now around 0.2% lower than they were in June), are now incentivising lenders, and even those whose service hasn’t been ‘top notch’ in recent times are pricing down. HSBC and now Natwest. Whilst the Lloyds Banking Group only repriced last week, it is only a matter of time before their sub-divisions such as Halifax do so again to keep up with the Jones’s”.
Shaw Financial Services mortgage expert Lewis Shaw suggests that with NatWest quickly following HSBC in announcing new rate reductions, there’s every chance we could see the remaining big four come to the party this week too.
“It would appear that lenders are struggling to get new business, and the rate tap is the only tool they can turn to. Perhaps the dire Zoopla and Nationwide HPI data last week, which showed transaction levels plummeting along with house price falls, has many boardrooms concerned, and this is the only response in town that can move the needle. Maybe the autumn bounce has just begun”.
