NatWest cuts rates by up to 0.36%, a move that "could trigger a domino effect"

NatWest breaks the ice with a refreshing rate cut. As the first major high street bank to trim their mortgage rates by up to 0.36%, this could trigger a domino effect across the lending landscape. With swap rates heading south and the recent base rate reduction, this move by NatWest couldn't be more timely for homeowners, particularly those eyeing a remortgage. While the purchase market might take a breather due to upcoming stamp duty changes, these rate improvements could provide a welcome boost to household budgets in a sluggish economy. Keep your eyes peeled, as other lenders are likely to follow suit.​​

NatWest started what will hopefully be a week of cuts late on Monday afternoon. With more rate cuts expected given the weakness of the economy and the Bank of England's gloomy verdict last week, borrowers may well be getting more good news as the week continues.

These are pretty sizeable cuts from a major lender and more are likely to follow. With affordability an ongoing issue for borrowers, every cut can make a difference. Those looking to remortgage will be particularly pleased.

This week will be an interesting one. We will see how lenders react to the reduction in market pricing last week. By Friday, we should see lenders make some decent cuts, but that may be it for the time being. Every little helps and households will welcome any savings they can make in no-growth Britain.

This is likely the first of many mortgage lenders that will look to reprice given the recent base rate cut, and more importantly the economic forecasts for the UK this year. Significant cuts of up to 0.36% will be of interest to those borrowers looking to grab a cheaper deal on their remortgage. This will inevitably be the main focus for lenders in 2025 as the purchase market may slow after the impending stamp duty changes.

NatWest kicked off the week with some decent rate cuts late on Monday. These reductions will reverberate through the lender community now and more cuts are sure to come this week.

NatWest’s decision to cut rates by up to 0.36% is welcome news, particularly for remortgage clients who stand to benefit the most. As the first major high street lender to act following the Base Rate cut and improved Swap rates, this move could encourage wider lender action. However, Thursday’s inflation report will be pivotal in shaping future rate expectations.