NatWest rate changes offer a glimpse of "light at the end of the tunnel"
NatWest has just announced a number of rate changes (see screengrab). Newspage asked brokers for their thoughts, below.
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16 responses from the Newspage communityCopy all
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It's great to see an immediate response to the improved inflation figures this morning, with NatWest leading the way with improvements to many of their fixed rate deals. This slams the brakes on rate increases for the moment. But the tracker rates increasing by up to 0.40%? Is that NatWest looking to grab more profit in readiness of some base rate cuts on the horizon?
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NatWest have been quick off the mark in reducing their product rates after the good inflation news today. We have already seen some downward movement in SWAP rates, which could help to reignite the competition between lenders we saw at the start of the year. This will be a much-needed boon to borrowers and house hunters alike and will hopefully put pressure on the Bank of England to cut rates sooner rather than later. It is now time for brave decisions to get ahead of the market.
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It's great to see NatWest wheel out the first of hopefully many lender rate reductions this week following the better than expected inflation data this morning. It is shaping up to be a positive week for the mortgage market.
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Anxious borrowers will see a little light at the end of the tunnel with news that one of the country's biggest lenders has reduced rates just hours after inflation fell to its lowest level since September 2021. All eyes are now on tomorrow's rate decision, but the cautious approach on Threadneedle Street is set to dampen any hopes that today has created.
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NatWest are poised to pounce ahead of the Bank of England's announcement tomorrow. They are the first lender to reduce following the positive news this morning that inflation dropped further than expected. It's great to see how positive data can drive immediate change with lenders. If the Bank of England are brave enough to reduce tomorrow, we could see reductions ripple across the industry.
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NatWest are the first big bank to act following the positive inflation numbers released this morning. This is welcome news for mortgage borrowers across the country who will now be sat in positive anticipation, waiting for other lenders to drop their own rates, too. Here's hoping this could be the start of a new rate war in the mortgage market.
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This morning's CPI figures, coupled with the expectation that inflation will fall to around 2%, has prompted lenders to re-think the recent increases imposed on borrowers. NatWest is out of the blocks this morning with rate cuts across the board but, noticeably, has increased margins on tracker deals. All eyes are now on the Bank of England's decision tomorrow when rates are likely to be held at 5.25%. Other lenders are likely to follow suit.
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It appears the UK has been bracing itself for this groundbreaking moment, with all but 1-, 2- and 3-year swap rates under 4%. I fully expect to see the Bank of England to reduce the base rate within the next 3 months, which will spark a domino effect across most major lenders as they return to the market with ultra competitve rates. The only negative I see is the current government will surely use this as a win and spin it as a success story ahead of a general election when they have done very little to ease the burden on extremely high costs to the UK public. With NatWest so quick off the mark, it shows they were confident in the inflation decrease occuring today and I don't think we will be waiting long for other major lenders to join the market with further reductions.
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NatWest is shaking things up with rate cuts on mortgages, sparking hope for a trend that others might join. In a move that could change the game, they've announced reductions effective March 21st, inspired by today's drop in Sonia swap rates, thanks to lower inflation news. This could mean more savings in your pocket and a brighter outlook for borrowers. Fingers crossed that this starts a positive ripple effect across the lending world.
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NatWest step into the spotlight with the first rate cut off the back of the newly released Inflation figures. The rate reductions are not massive, more like a tentative shuffle forward, but a reduction nonetheless. What we now want to see is the rest of the lenders reacting in a similair fashion. Will they come forward or will they lurk in the shadows until after the base rate decision Tomorow? We need to see if this is the first domino that will fall setting off a much needed chain reaction.
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Inflation falling more sharply than forecast will breathe new life into the mortgage market, which has been stagnant for a month now. NatWest are the first to show their hand with some rate reductions to 5-year fixed products. Ideally I would like to see reductions across the range, but this is a positive start and other lenders will follow suit.
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It's encouraging to see a major lender lower its fixed rate, and you have to hope that other big lenders will follow suit. However, it is intriguing to observe NatWest's decision to raise the prices of tracker products, especially when these are experiencing a surge in demand.
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Hallelujah! This is music to the ears of borrowers. After weeks of solid rate increases, one of the big six is willing to put down its 5-year fixed rates. Hopefully this is the start of things to come and will energise the mortgage and property market.
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A very strategic move from Natwest in jumping straight in with both feet after the better-than-expected inflation data of this morning, decreasing some of its mortgage rates by up to .24%. This will see competitor lenders to follow suit and we expect some opening salvos in response shortly. This is exactly the news that UK households needed to ease their household budgets. We live in hope that the Bank of England follows with at least a .25% cut to the base rate tomorrow as an early Easter present to already stretched property owners.
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NatWest are first out of the blocks after today's inflation announcement. However, with no major lender predicting an imminent base rate reduction, is the increase on their tracker margins a ploy to make some more money off of sentiment alone, with no real justification behind it? Unless they know something we don't about tomorrow's likely decision?
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This is a mixed bag of rates going up and down. Great if you are looking at a 5-year fixed rate but not so good if you want a 2-year deal. A gold star for NatWest sending this email out early in the day too, not at 4pm like some others, but a mark in the copy book for asking brokers to work until 10:30pm. Whilst it sounds great that rates are available on the system until that time, it also means that the expectation is for brokers to cancel their personal lives to sit at their desks keying cases. No NatWest staff will be at their desks to support brokers at this time. It would have been better to see the cut off being midday on the 21st rather than nearly midnight on the 20th.