NatWest offers 3.89% loans, Santander reduces rates by up to 27bps Mortgage Strategy

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NatWest will cut fixed rates across a range of mortgages bringing some residential loans down to 3.89% tomorrow, while Santander also reduces fixes by up to 27 basis points as the sector’s price war continues.

NatWest’s reductions of up to 76bps include:

  • Five-year 60% loan to value purchase fixes down by 14bps to 3.89%, with a £1,495 product fee
  • Two-year 60% LTV remortgage fixes down by 76bps to 4.05%, with a £3,499 product fee
  • Two-year 65% LTV green landlord purchase fixes down by 42bps to 4.57%, with a £995 product fee

NatWest’s move comes after it last week launched a sub-4% mortgage deal that is only available to direct customers in a move that frustrated brokers. It offers online-only direct customers five-year fixes at 3.97% up to 60% LTV with a £1,495 fee.

Meanwhile, Santander also launches a range of mortgage reductions tomorrow, which include:

New business

  • Selected residential fixes down by between 2bps and 19bps for purchases and remortgages
  • Selected landlord fixes down by between 5bps and 15bps

Product transfers

  • Selected residential fixes down by between 1bp and 27bps
  • Selected landlord rates down by between 5bps and 15bps

The lender will also launch 10-year purchase and remortgage fixes.

The move follows a 0.25% base rate cut to 5.00% by the Bank of England earlier this month, which has quickened the pace of summer home loan reductions among lenders.


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