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"NatWest has clearly got other ideas" as it cuts mortgage rates

Journalist: Riz Malik

ended 23. September 2024

NatWest has today announced that, effective 24th September, they are making changes to their New Business product range, which include rate decreases of up to 12bps on residential purchase deals and 60bps on buy-to-let loans. Full details of the changes below. Newspage asked brokers whether this is surprising following last week's rate hold by the Bank of England and whether we can expect rate cuts to continue? Also, what's driving these cuts and what might they mean for the UK housing market?

New Business Rate Changes:

  • Purchase: Rate decrease of up to 12bps on selected 2 and 5 year deals.
  • Purchase – high value: Rate decrease of up to 12bps on selected 2 and 5 year deals.
  • Purchase – tracker: Rate decrease of up to 12bps on selected 2 year deals.
  • Purchase – high value tracker: Rate decrease of up to 12bps on selected 2 year deals.
  • Remortgage: Rate decrease of up to 12bps on selected 2 and 5 year deals.
  • Remortgage – high value: Rate decrease of up to 12bps on selected 2 and 5 year deals.
  • Remortgage – tracker: Rate decrease of up to 12bps on selected 2 year deals.
  • Remortgage – high value tracker: Rate decrease of up to 12bps on selected 2 year deals.
  • First time buyer: Rate decrease of up to 12bps on selected 2 and 5 year deals.
  • Shared equity - purchase: Rate decrease of up to 12bps on selected 2 and 5 year deals.
  • Help to Buy shared equity - remortgage: Rate decrease of up to 12bps on selected 2 and 5 year deals.
  • Buy to Let - purchase: Rate decrease of up to 60bps and 32bps on selected 2 and 5 year deals.
  • Buy to Let - remortgage: Rate decrease of up to 47bps and 42bps on selected 2 and 5 year deals.
  • Green - purchase: Rate decrease of up to 12bps on selected 2 and 5 year deals.
  • Green - remortgage: Rate decrease of up to 12bps on selected 2 and 5 year deals.
  • Green – Buy to Let purchase: Rate decrease of up to 40bps and 28bps on selected 2 and 5 year deals.
  • Green – Buy to Let remortgage: Rate decrease of up to 20bps and 38bps on selected 2 and 5 year deals.

9 responses from the Newspage community

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Tony Castle
Managing Director at PFG Mortgages
More rate reductions to kick-start another week. NatWest are first out of the blocks with some good rate cuts across the range. With the Bank of England holding the base rate steady, the expectation was that mortgage rates may have stagnated or potentially even increased. Good news for those considering buying or remortgaging.
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Simon Bridgland
Director at Charwin Private Clients
Good to see there is still gas in the tank for rate cuts. NatWest choosing to reduce now is a sign of confidence in the months ahead. Last week's inflation announcement had put the cat amongst the pigeons and a pause was thought to follow. Perhaps this move could help to further stimulate a continued move south for fixed rates.
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Riz Malik
Independent Financial Adviser at R3 Wealth
There were concerns that rate cuts might be slowing down following last week's 'hold' decision from the Bank of England. However, NatWest has clearly got other ideas. It has started another week with rate cuts across its mortgage range. This should inject further confidence into the UK housing market, and bring further relief to mortgage holders before the Halloween Budget.
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Dariusz Karpowicz
Director at Albion Financial Advice
The trend continues, and that’s definitely good news for consumers and the housing market. You’d think there might be a cooling-off period after the Bank of England decided to hold the base rate, but it seems lenders like NatWest are still full steam ahead with rate cuts. With decreases of up to 60bps on buy-to-let deals, it's clear they’re keen to keep the momentum going. It’s a welcome relief for borrowers, especially with the high-value and green products also getting some attention. Let’s hope this positive trend continues and gives the market the boost it needs.
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Darryl Dhoffer
Founder at The Mortgage Geezer
It's good to see another high street lender trim their mortgage rates, although NatWest have lagged behind other major high street lenders who had already priced in previous swap rate reductions. This is good for the consumer, for sure, however we may be in a stagnant period particularly if UK inflation continues to be stubborn, the Bank of England hold rates again when they next meet and swap rates don't keep falling.
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Rohit Kohli
Director at The Mortgage Stop
Given the bad news last week with inflation and consumer confidence, these reductions from NatWest are a little surprising but very welcome. Messaging this week from the Chancellor at the party conference will be key to the reductions continuing. If she continues with her downbeat doom and gloom rhetoric then industry and business will react accordingly. However, she has the opportunity to tone this down and start to be more upbeat to rebuild confidence and help return us to growth.
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Ben Perks
Managing Director at Orchard Financial Advisers
NatWest swoop in and slash rates, lifting our spirits on this soggy Monday morning. A good start to the week and it will likely encourage the other big lenders to do the same.
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David Stirling
Independent Financial Advisor at Mint Wealth
NatWest has gone against the grain this morning and made some tasty looking rate cuts, despite the gloomy outlook cast by last week's inflation data and the Bank of England leaving the base rate unchanged. Have some lenders been holding back and are we likely to see further competition this week? Let's hope so.
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Iain Swatton
Director at Exemplar Financial Services
NatWest's decision to reduce rates, even with the Bank of England holding rates steady, highlights their intention to remain competitive and attract new borrowers. This move positions NatWest at the forefront of offering more attractive deals, especially at a time when other lenders may hesitate. By adjusting their rates, NatWest has demonstrated a clear focus on staying ahead in the market, creating a positive opportunity for homebuyers and those looking to remortgage.