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NatWest latest lender to cut rates at higher LTVs

ended 16. February 2026

NatWest is the latest high street lender to announced rate cuts that specifically target first-time buyers, following on from Santander on Friday, with cuts of upto 0.32% and Nationwide on Thursday with cuts of up to 0.16%. The biggest reduction from NatWest is on its 2-year fixed rate purchase mortgage at 95% LTV, which will reduce by 12bps from 4.81% to 4.69% (no product fee £0). Why are lenders cutting rates and why do more and more seem especially keen to target FTBs? Views ASAP please as writing story now.

6 responses from the Newspage community

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Rohit KohliVerified
Director at The Mortgage Stop
Cuts are coming quicker and competition is clearly creeping back in. NatWest’s move isn’t happening in isolation. Two and five-year swap rates have been sliding, with the two-year close to its lowest point in the past couple of years. Markets are increasingly pricing in a base rate cut, helped by softer employment data and frankly pathetic growth figures. If this week’s inflation numbers start heading towards the 2% target, that expectation only strengthens. Lenders are moving early to secure volume. First-time buyers are far more active than they were 12 to 18 months ago. Demand is there and demand is strong. By trimming rates at 90% and 95% LTV, NatWest is backing borrowers with smaller deposits, not just those sitting on equity. A 4.69% two-year fix at 95% with no fee won’t change everything, but it will tip more cases over the affordability line.
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Louis MasonVerified
Content and Communications Director at Oportfolio Mortgages
First-time buyers are basically the golden ticket of the mortgage world right now. They don't need to sell a property first, they're keen as mustard, and let's be honest, they're often too busy panicking about deposits to ruthlessly shop around. That makes them brilliant long-term customers.
NatWest saw Santander and Nationwide making moves last week and thought 'not on my watch.' That 95% LTV rate dropping to 4.69% is a proper statement, they're going after market share, and FTBs are where the action is.
For first-time buyers: 18 months ago, sub-4.7% on a 95% mortgage would've sounded like fantasy. If you're ready to buy and can afford it, stop agonising and lock something in. These cuts are designed to make you panic slightly, and for once, a bit of panic is actually justified.
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Samuel Mather-HolgateVerified
Managing Director & IFA at Mather and Murray Financial
Major lenders seem to be targeting higher loan-to-values, with Santander, Nationwide and now NatWest making their rates more competitive at 95% loan-to-value (LTV). This is fantastic news for first-time buyers and, if inflation comes down on Wednesday as expected, rates could continue on their downward trajectory.
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David StirlingVerified
Independent Financial Adviser at Mint Wealth
NatWest are the latest lender to drop their low-deposit rates and follow Santander and Nationwide in hot pursuit of first-time buyer market share. This is great news for those struggling to save a deposit and a signal from some of the larger lenders that they want the high-LTV business to kickstart the property market properly in 2026.
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Andrew MontlakeVerified
CEO at Coreco
Lenders have first-time buyers firmly in their sights. The cuts we've seen in recent days are highly encouraging and reflect falling swap rates and expectations of inflation falling and the base rate being cut. Affordability is being improved almost by the day right now and it's shaping up to be a busier than usual spring property market.
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Omer MehmetVerified
Managing Director at Trinity Finance
The first-time buyer mortgage market is officially on fire. Lenders are actively targeting this demographic and the result is a huge win for those seeking to get onto the ladder. Rates coming down further supports affordability and can make a huge difference for aspiring borrowers.