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NatWest cut rates as hopes of a base rate cut grow

ended 08. December 2025

NatWest are the latest lender to cut mortgage rates as the expectation of a base rate cut looms large.

https://www.intermediary.natwest.com/intermediary-solutions/9th-December-product-change.html

Headline rates include 3.62% Fixed 2yrs with £1495 Product Fee (60% Purchase), or 3.66% fixed 2yrs with a £1495 product fee (60% remortgage)

Plenty of improvement across the full range of residential and BTL deals.

Good news? Catch up on other lenders' rate changes from last week? Comments please :)

 

 

7 responses from the Newspage community

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Shaun Sturgess
Director at Sturgess Mortgage Solutions
NatWest joining Nationwide and Santander with further rate cuts is a brilliant way to close out the year. It feels like lenders are handing borrowers an early Christmas lift, and you can really sense the battle for the top of the sourcing tables heating up. After a challenging 2025, this momentum is exactly what buyers and homeowners across Wales have been hoping for. Any reduction on core 2-year products makes a real difference to affordability, and it brings a renewed sense of optimism as we move into the New Year. From the conversations I’m having daily, people are starting to feel that 2026 might finally offer a more stable and predictable market. What’s most telling is that lenders aren’t waiting for the Bank of England to make the first move — they’re already positioning themselves early. It sets a positive tone for January and could be the spark that gets the housing market moving again.
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Justin Moy
Managing Director at EHF Mortgages
NatWest has thrown its hat into the ring after changes announced by Nationwide and Santander last week. Once again, we're seeing the usual cartel-style pricing implemented to hoover up the nation's borrowers. Things are looking very positive right now at the end of 2025, as lenders start to look forward to next year's targets and we move ever closet to what will hopefully be a cut to the base rate next week.
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Jack Tutton
Director at SJ Mortgages
NatWest are the latest lender to enter the current rate war that we are seeing develop over the last week, this is following Nationwide and Santander's reductions last week. The market is hotting up due to the strong prediction of a Base Rate cut before Christmas and potentially more to come to come in 2026. Mortgage holders will be hoping that these cuts are a gift that keeps on gifting and more reductions from more lenders are to come.
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Darryl Dhoffer
Founder at The Mortgage Geezer
NatWest are keen not to miss out on the festive action as other big lenders have been cutting aggressively over the past week. Bah Humbug on not offering cashback deals as well, but at least we are now on the road to lower rates.
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David Stirling
Independent Financial Adviser at Mint Wealth
NatWest has this morning announced they are dropping mortgage rates, clearly getting into the Christmas spirit early. Those with big deposits or equity can now access two-year fixes from 3.62%. With other lenders already in the rate-cut conga line last week, borrowers will be dancing their way into 2026.
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Craig Fish
Director at Lodestone Mortgages
In the run up to Christmas the festive feeling is definitely in the air, with lenders handing out rate reductions like Christmas presents. The feeling is that this is likely to continue in coming weeks and into the new year meaning that there is a lot of positivity for those looking to buy and remortgage.
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Patricia McGirr
Founder at Repossession Rescue Network
Great news if you’re shopping around right now, but not the headlines I’d like to see. Lenders cutting rates is great theatre, but it does nothing for the households trapped on standard variable. rates (SVRs), stuck in arrears or welded to an interest only loan with no exit. These glossy headline rates are for the financially flawless, while the people carrying the heaviest strain are paying for the privilege. The market is celebrating cheaper borrowing for the lucky few, yet millions remain locked out of the system through no fault of their own. If lenders want to spread Christmas cheer, they could start by offering real pathways for mortgage prisoners. Rate cuts grab headlines, but fairness would change lives.