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"Rate cut rumble" as HSBC and NatWest reduce mortgage rates

ended 07. July 2025

Both NatWest and HSBC have today announced further mortgage rate cuts for both new and existing borrowers, moving home or remortgaging. Whilst the rates from HSBC have not been revealed yet, NatWest has cut selected products by up to 0.13%.

With Santander also offering lower rates from today, brokers have urged borrowers to “grab a good deal now” and “keep their eyes wide open” in a fast-moving market.

Ken James, Director at Contractor Mortgage Services, said: "There's a rate cut rumble right now. NatWest and HSBC join the fray as the mortgage rate war heats up once again.

“As more lenders start to make reductions, borrowers will start to focus on finding added value beyond headline pricing, such as looser affordability checks, more flexible criteria and higher loan-to-values. It’s not just about rates anymore. The mortgage market's getting creative and competitive.”

Adam Stiles, Managing Director at Helix Financial Partners, said people need to stay alert all the way through to completion: "Downward drops should always be applauded irrespective of size. Securing a rate as early as possible is advised, and then making sure you — or your broker if you have one — keep an eye on rates with that lender so you can follow future rate drops down up until completion. In the current market, you need your eyes wide open."

Justin Moy, Managing Director at EHF Mortgages, said: “Continued competition on the High Street is pushing rates lower, even if Swap rates, which fixed rate mortgages are priced off, are wobbling here, there and everywhere. All reductions are welcome, although the need to pass on a water-thin 0.01% can generate more effort than it's worth. Grabbing a good deal now, if you are close to renewal, really is the way to have a stress-free summer and forget about mortgage rates for a while.”

Babek Ismayil, Founder at homebuying platform, OneDome, said that while the cuts were not huge, the growing focus on affordability is key: “Rate cuts in whatever form they come offer a boost, however small, to borrowers. That in turn improves sentiment, something that is essential to the property market. But where lenders are really starting to innovate is in the area of affordability. That's the main hurdle for many aspiring buyers but it's one more and more are thankfully starting to clear. We may not be getting significant rate cuts, but we're seeing significant steps forward on the affordability front.”

Harps Garcha, Director at Brooklyns Financial, said house prices flatlining could also help buyers: “Halifax reports that house prices were flat in June, and falling mortgage rates are giving borrowers a bit of breathing room. The next step is for lenders to continue to ease up on affordability rules and criteria, as that’s where real progress will be made.”

Rob Peters, Principal at Simple Fast Mortgage, agreed: “This is a classic mortgage market dance. Lenders are trimming rates to remain competitive and manage business volumes, but the real battleground now is criteria and affordability. Buyers care about rate, but they care most about being able to borrow enough to secure a home. I expect to see lenders coupling small rate cuts with enhanced affordability calculations and higher LTV products to truly stand out in this cautious market.”

7 responses from the Newspage community

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Ken James
Director at Contractor Mortgage Services
There's a rate cut rumble right now. NatWest and HSBC join the fray as the mortgage rate war heats up once again. Hot on the heels of Santander's latest rate reductions this morning, NatWest and HSBC have stepped into the ring with their own cuts for both new and existing borrowers. NatWest has trimmed rates by up to 0.13% on selected deals, and while many tweaks may be modest they are still cuts and this is an encouraging sign. HSBC are up to their usual tricks of announcing rate cuts but not telling us what they are so this will be one to watch out for. However, their announcement signals more competitive moves to come. As more lenders start to make reductions, borrowers will start to focus on finding added value beyond headline pricing, such as looser affordability checks, more flexible criteria and higher loan-to-values. It’s not just about rates anymore. The mortgage market's getting creative and competitive.
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Harps Garcha
Director at Brooklyns Financial
Halifax reports that house prices were flat in June, and falling mortgage rates are giving borrowers a bit of breathing room. But is the rate drop driven by falling SWAP rates or just lenders competing harder for business? Likely a mix of both. Either way, it’s good news for mortgage holders. The next step is for lenders to continue to ease up on affordability rules and criteria, as that’s where real progress will be made.
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Justin Moy
Managing Director at EHF Mortgages
Continued competition on the High Street is pushing rates lower, even if Swap rates, which fixed rate mortgages are priced off, are wobbling here, there and everywhere. All reductions are welcome, although the need to pass on a water-thin 0.01% can generate more effort than it's worth. Grabbing a good deal now, if you are close to renewal, really is the way to have a stress-free summer and forget about mortgage rates for a while.
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Editor
Babek Ismayil
CEO at homebuying platform OneDome
Rate cuts in whatever form they come offer a boost, however small, to borrowers. That in turn improves sentiment, something that is essential to the property market. But where lenders are really starting to innovate is in the area of affordability. That's the main hurdle for many aspiring buyers but it's one more and more are thankfully starting to clear. We may not be getting significant rate cuts, but we're seeing significant steps forward on the affordability front.
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Editor
Adam Stiles
Managing Director at Helix Financial Partners
Downward drops should always be applauded irrespective of size. Securing a rate as early as possible is advised, and then making sure you (or your broker if you have one) keep an eye on rates with that lender so you can follow future rate drops down up until completion. In the current market, you need your eyes wide open.
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Editor
Rob Peters
Principal at Simple Fast Mortgage
This is a classic mortgage market dance. Lenders are trimming rates to remain competitive and manage business volumes, but the real battleground now is criteria and affordability. Buyers care about rate, but they care most about being able to borrow enough to secure a home. I expect to see lenders coupling small rate cuts with enhanced affordability calculations and higher LTV products to truly stand out in this cautious market.
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Sean Horton
Managing Director at Respect Mortgages
These modest rate reductions signal lenders are fighting for market share, but the real story lies beyond the headlines. Whilst a 0.13% cut won't transform anyone's finances overnight, it reflects growing competition as lenders chase business volumes.

The affordability enhancements and higher LTV products emerging alongside these cuts will prove far more valuable than the marginal rate improvements for most buyers.