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NatWest cuts high LTV rates by up to 0.19%: "NatWest have just provided a massive boost to those with smaller deposits"

Journalist: Justin Moy, Contributing Editor

ended 12. September 2024

In welcome news for first-time buyers and those with smaller deposits, NatWest has just announced fixed rate cuts of up to 0.19% across selected 90% and 95% loan-to-value products. Newspage asked brokers for their views, below.

13 responses from the Newspage community

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Ken James
Director at Contractor Mortgage Services
NatWest have just provided a massive boost to those with smaller deposits, sending a signal to other lenders that this is the end of the market that could do with more support. We have seen that lenders have the capacity to offer these rate cuts and brokers are starting to see buyers coming back to the market with a renewed sense of positivity. Let's hope that this will cascade down the line to other lenders so that we have more competition at these higher loan-to-value brackets.
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Simon Bridgland
Director at Charwin Private Clients
NatWest does sometimes pull a master stroke and product reductions at the top end of the loan to value scale is just that. These new rates are sure to quench the thirst of those borrowers salivating for lower rates.
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Justin Moy
Managing Director at EHF Mortgages
These cute are a huge fillip for first-time buyers. Many spend ages trying to save a 5% or 10% deposit but have to wince at the cost of the mortgage payments. It's easy for lenders to price 'to the bottom' with high deposit mortgages, so to see those with much smaller funds or equity also benefit is a sign of an improving market, and a more positive mood from NatWest.
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Mark Scott
Director and IFA at Positive Advisers Ltd
Many first-time buyers are sitting, waiting for rates to drop, and this will motivate some. Our team of brokers makes the point to buyers: "You will not know the perfect time to buy until it's past." What we mean by this is that we would expect house prices to continue to increase as rates drop. Do you wait for the cheaper rate and potentially pay more and so borrow more? Or do you jump in? With this unknown situation, as long as you plan to stay in the home for 3 to 5 years, just jump in.
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Iain Swatton
Director at Exemplar Financial Services
This is fantastic news for first-time buyers and those with smaller deposits. NatWest's rate cut for 90% and 95% LTV mortgages is a huge boost for borrowers looking to get on the property ladder. With lower rates, homeownership is now more accessible, and we hope other lenders follow suit. This is a real step in the right direction for the housing and mortgage market.
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Riz Malik
Independent Financial Adviser at R3 Wealth
Market conditions are becoming more favourable as traders are pricing in further base rate cuts over the next six months. Rates will likely continue to come down, and NatWest's reductions on higher loan-to-value products are welcome. We should be seeing other lenders making some decent reductions in the week ahead as lenders build their book for 2025 completions.
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Michelle Lawson
Director at Lawson Financial
Some great rate cuts for the purchase and first-time buyer markets. Targeted moves like this to tempt first-time buyers and people with less equity into the market is what starts the chain reaction.
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Craig Fish
Director at Lodestone Mortgages
As interest rates decrease, so impetus in the property market increases. These reductions from NatWest will be of particular interest to first-time buyers and those with small deposits, which is great news. Gradually, the mortgage landscape is improving for all borrowers: those with large or small deposits, remortgage or purchase, first-time buyers and buy-to-let.
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Darryl Dhoffer
Founder at The Mortgage Geezer
Another swoop of the rate cut combine harvester. This time it's NatWest, and it's encouraging news indeed for borrowers with low deposits who are getting a look in at last. Take a bow NatWest.
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Gabriel McKeown
Head of Macroeconomics at Sad Rabbit - Substack Newsletter
It's a game of ‘Simon Says’ in the mortgage world, and this time, he’s telling lenders to "keep cutting your rates". With the great mortgage rate limbo in full swing, there is growing optimism among prospective buyers, with reductions offering financial relief to many struggling to transition from historically low rates. However, with the BoE's base rate remaining stable at 5%, the move suggests NatWest are relying on falling swap rates, which directly impact mortgage pricing more than the base rate itself. So, although the latest set of rate cuts light a path through the uncertainty for borrowers, the fog of economic instability is ever present.
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Rohit Kohli
Director at The Mortgage Stop
Finally, lenders are waking up to the fact that first-time buyers are desperately in need of some reductions in their rates and these reductions from Natwest are very welcome. What we need now is for this Labour government to start installing some confidence in the market and stop their downbeat agenda.
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Tony Castle
Managing Director at PFG Mortgages
NatWest have pulled out all the stops to help first-time buyers and those with smaller deposit. This is a welcome boost to those saving hard to purchase their first homes. Hopefully this will see other lenders follow suit to keep driving the property market in the right direction.
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David Stirling
Independent Financial Advisor at Mint Wealth
It's not exactly Christmas come early, but the banks must be now eyeing their 2024 lending targets, as Natwest now offer a little boost to borrowers with lower deposits. More confidence being applied to those with their hard-earned and smaller deposits should give some impetus to more lenders to cut rates further this week. Bravo to NatWest for cutting the typically less attractive higher loan-to-value rates for purchasers.