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NatWest announces mortgage rate cuts of up to 41bps: "These are highly aggressive rate reductions from NatWest"

ended 23. October 2024

Following many lenders increasing their mortgage rates over the past week or two, NatWest has today announced some some significant reductions of up to 41bps from 25th October across its residential and buy-to-let mortgage range.

One broker, Darryl Dhoffer, Managing Director at The Mortgage Geezer, said the cuts will have caught other lenders off guard: “These are highly aggressive rate reductions from NatWest and are poised to disrupt the market. Their bold move could catch competitors off guard, as they appear determined to capitalise on the remaining business opportunities of 2024.

Katy Eatenton, Mortgage & Protection Specialist at Lifetime Wealth Management, said other lenders would almost certainly follow NatWest's move: "NatWest have just smashed it out of the park and their competitors will be wondering what's going on. After a week or so of rates rising, they are now going back down again. Other lenders will surely now follow and that's fantastic news for borrowers and the property market."

Ben Perks, Managing Director at Orchard Financial Advisers, welcomed the news and said it's game on for borrowers: “NatWest have made the other big lenders look rather silly this evening. When others are increasing their rates, they have thrown the cat among the pigeons and announced some pretty chunky cuts to their product range. The message is clear; they will not be deterred from lending, they are not fearful of the upcoming Budget and they are very keen to lend in the last quarter of 2024. It's game on for borrowers.”

9 responses from the Newspage community

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Darryl Dhoffer
Founder at The Mortgage Geezer
These are highly aggressive rate reductions from NatWest and are poised to disrupt the market. Their bold move could catch competitors off guard, as they appear determined to capitalise on the remaining business opportunities of 2024. Borrowers will be salivating at these reductions and the fact they come ahead of the Budget is an added bonus.
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Ken James
Director at Contractor Mortgage Services
NatWest have just hit us with a veritable smorgasboard of rate reductions, swimming against the tide of rate increases and flying the flag for those still looking to get a good deal in this ever-changing market. This will be hard for the big lenders to ignore as business will certainly be edging NatWest's way unless other lenders match or improve on what is being delivered to the market here.
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Ben Perks
Managing Director at Orchard Financial Advisers
NatWest have made the other big lenders look rather silly this evening. When others are increasing their rates, they have thrown the cat among the pigeons and announced some pretty chunky cuts to their product range. The message is clear; they will not be deterred from lending, they are not fearful of the upcoming Budget and they are very keen to lend in the last quarter of 2024. It's game on for borrowers.
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Justin Moy
Managing Director at EHF Mortgages
Many of these rate cuts reverse those increases from last week, so it looks to be ‘business as usual’ after that blip in pricing. Purchase deals have some extra rocket power with larger cuts of up to 0.4%, again helping stimulate activity and will raise the eyebrow of other lenders. This is a great move by NatWest and others lenders will undoubtedly follow quickly.
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Simon Bridgland
Director at Charwin Private Clients
NatWest knock it out of the park with some huge rate drops. Things are set to heat up this week as pressure piles onto lenders to secure new business before the year is out. Lenders changing fixed rate deals in quick succession means we could be witnessing the start of a call to arms from lenders chasing down borrowers before we see in 2025.
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Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
NatWest clearly aren't too worried about the Budget as these are serious cuts. NatWest have just smashed it out of the park and their competitors will be wondering what's going on. After a week or so of rates rising, they are now going back down again. Other lenders will surely now follow and that's fantastic news for borrowers and the property market.
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Rohit Kohli
Director at The Mortgage Stop
These types of U-turns are very welcome. Not only are Natwest reducing but in some cases the reduction looks to be more than the increases they put in place last week. While lenders need to react to market conditions, the increases that some of the major high street lenders announced over the past couple of weeks felt a little knee-jerk and that now looks to be the case.
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Tony Castle
Managing Director at PFG Mortgages
NatWest now reducing rates quite significantly shows the volatility surrounding mortgage rates at the moment. Within a week they have increased rates and have now almost done a complete U-turn in decreasing. It’s going to be an interesting few weeks ahead that’s for certain. Borrowers locking in rates at the moment have to be on their toes with rate fluctuations.
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Hannah Bashford
Director at Model Financial Solutions
It seems NatWest may be having buyers' remorse and are rewinding the increases of the past week or so, with some extra savings for borrowers on top. Whatever the reason for these cuts, these are certainly rate reductions that will turn heads. They will also help NatWest hit their year-end targets. Who will be next? It's hard to see other lenders not having to follow suit.