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NatWest join sub-4% fixed deal lenders

Journalist: Justin Moy, Contributing Editor

ended 15. January 2024

NatWest has just announced various cuts across their fixed rate ranges, for purchases, remortgages, product transfers, buy-to-let and even green deals. This is their second price change in January, piling pressure on other High Street lenders to follow suit. Newspage sought reaction from brokers, below.

 

17 responses from the Newspage community

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Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
Well, it definitely isn't a blue Monday in the mortgage world, with two of the High Street banks reducing rates for the second time this year. This will pile on the pressure for the others to follow suit, especially Nationwide, who haven't repriced this year yet.
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Richard Jennings CeMAP
Founder & Managing Director at Richard Jennings Mortgage Services
This is another terrific update on pricing from another of the big six lenders. These price cuts are certainly making their way through to the consumer, too. We're definitely seeing optimism return to borrowers with both mover and remortgage enquiries increasing materially over the past couple of months. Things are really looking to be on the up and if we have a positive inflation print they could improve further. Conversely, for product transfers, it's creating some rework due to our rate watch promise to clients.
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Amit Patel
Adviser at Trinity Finance
Great news for borrowers after the turmoil in 2023. All high street lenders except Nationwide have announced rate cuts in 2024. Over to you now Nationwide.
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Justin Moy
Managing Director at EHF Mortgages
NatWest has reduced rates for the second time this year, showing how keen they are to lend and reflecting the improvement in SWAP rates. Having more lenders sub-4% on some fixed deals is essential to spread the load and keep service levels decent across the industry. Great news for borrowers.
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Darryl Dhoffer
Founder at The Mortgage Geezer
The fight for mortgage supremacy in the UK continues, and NatWest just threw a right hook straight from the corner. In recent weeks we have seen other lenders battle it out with a slugfest of rate decreases. NatWest lands another blow, slashing rates on select fixed deals. Keeping up with repayments is key, and rising housing prices could put even the nimblest fighters on the canvas.
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Riz Malik
Independent Financial Adviser at R3 Wealth
It's rate reductions across the board (e.g. purchase, remortgage and buy to let) that we would like to see and Natwest's cuts are a good example of this. Do two rate reductions 11 days apart constitute a rate recession? Also, Nationwide, Nationwide, wherefore art thou Nationwide?
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Rita Kohli
Managing Director at The Mortgage Stop
Another welcome reduction, and for the second time this year NatWest showing a clear indication that it's primed and ready to lend. This competition amongst the big high street lenders is great for borrowers given where we were just 6 months ago. With more properties coming onto the market as well it looks like this first quarter could be a positive one for the UK housing market.
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Ben Perks
Managing Director at Orchard Financial Advisers
Reductions are always nice to see. Lenders: keep them coming. With these sub-4% rates, the pressure now mounts on other lenders to follow suit. Hopefully this isn't a flash in the pan, though, as in addition to low rates consumers want stability.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
Fantastic to have another lender join the below 4% party. All homeowners and borrowers will be dancing with joy at the potential savings.
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Elliott Culley
Director at Switch Mortgage Finance
NatWest have made moves to keep in touch with the other lenders making headlines with lower mortgage rates. It's good to see more lenders dropping their rates and as this provides more clients the opportunity to secure a better rate. This is the second time this year NatWest have reduced which shows how competitive this market is right now.
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Anil Mistry
Director and Mortgage Broker at RNR Mortgage Solutions
HSBC kicked things off, and now NatWest's leaping into the fray with gusto — a proper game-changer for anyone itching to relocate, snag their inaugural pad, or switch up their mortgage. It's a brilliant turn of events, injecting a hefty dose of optimism into the mortgage market. I'm banking on more High Street heavyweights joining this scuffle soon. After all, who'd want to miss out on a juicy piece of the action? The message is clear: the mortgage scene's heating up, and the competition's fierce, and not before time.
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Rob Gill
Managing Director at Altura Mortgage Finance
These rate cuts from NatWest are another welcome move in the ongoing rate war between lenders competing for business. The recent cuts on either side of Christmas were sparked by lower-than-expected inflation figures in December. With the next set of figures due this week on Wednesday 17th, lenders and borrowers will be watching closely, hoping for a further fall in inflation and more rate cuts as a result.
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Laura Bairstow
Founder at The Mortgage Masters
Great news for homeowners and first-time buyers alike to see yet another big lender jump on the rate war bandwagon and reduce their rates across their whole product ranges. Let's hope they don't follow in the footsteps of the Co-op with their 'blink and you miss it' offering of reduced products being pulled after just three days. Fingers crossed that these rate reductions are sustained and the downward trend continues.
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Charles Breen
Founder at C B
This year has been marked by almost damascene changes of heart from lenders relative to what we endured just a short 12 months ago. We are on the cusp of all 2-year deals starting with a 3. It's now just a matter of when, and who will be brave enough to do it first.
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Gary Bush
Financial Adviser at MortgageShop.com
To see another High Street lender dropping some of their rates into the 3% arena is music to the ears of mortgage account holders looking to remortgage, and for first-time buyers. With household budgets strained to the maximum throughout 2023 both the money market and lenders opting for a continued lower rate environment will ease some pressure. With estate agents also reporting drastically increased property viewing numbers the storm could well be about to pass for the industry.
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Steven Hargreaves
Mortgage and Protection Adviser at The Mortgage Co
Two of the Big Boys reducing rates this week already in the shape of HSBC and NatWest sends a positive message to the housing market. We have already seen a huge increase in enquiries for new mortgages this year, whether it be from first-time buyers, home movers or landlords. We see this as further evidence lenders are dropping their margins to attract new clients, which is great news and long may it continue.
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Peter Stamford
Mortgage Expert at Stamford Home Finance
It's exciting to see major lenders like NatWest shaking things up with their second rate cut this year. It's a big boost for buyers and those looking to remortgage, sparking optimism in the mortgage market. This competitive trend among the big players is injecting much-needed energy, especially after a tough previous year. If we get favourable inflation data soon, we might see more rate drops, firing up the market even more. It's a hopeful time for borrowers – here's to hoping these cuts stick and we see a sustained positive shift in the market. This could really be the turning point we've been waiting for.