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"Encouraging to see NatWest reduce rates further" after Wednesday's inflation data

Journalist: Justin Moy, Contributing Editor

ended 18. July 2024

Late yesterday afternoon, NatWest was the latest major lender to announce a range of rate cuts starting Friday 19th July, which will benefit a broad range of borrowers (see screengrab below). Newspage asked brokers if this is a masterstroke of pricing following yesterday's underwhelming inflation data, or simply NatWest falling in line with the rest of the market. Their views are below.

 

8 responses from the Newspage community

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Dr Konrad Rotthege
Co-founder at Conveyo
Interest rates being cut by a major lender after Wednesday's inflation data emerged is positive news for borrowers. Lower borrowing costs, even though nowhere near as low as they were a few years ago, will further stimulate activity in the property market. Lenders have been cutting rates for several weeks now, which suggests a base rate cut is coming, even if markets are less confident it will come in August.
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Ben Perks
Managing Director at Orchard Financial Advisers
NatWest weren't miles behind, but this certainly pushes them to the front of the peloton. They are well and truly in the mix and competing for business now. It's good to see and gives borrowers more choice and more confidence.
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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
NatWest Bank's latest rate reductions aren't game-changing for mortgage seekers, but in an increasingly competitive market, every move matters, and NatWest's rate cuts keep them firmly in the race for the top spot. Mortgage rate reductions across the board like this will save countless individuals money and fuel healthy competition between lenders.
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Rohit Kohli
Director at The Mortgage Stop
These latest reductions from Natwest, whilst small will help them move towards the top of the tables. Every reduction is good news for borrowers, especially with today's inflation figures which suggest that the promised break in the clouds we were expecting in August may not materialise.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
It's encouraging to see NatWest reduce rates further despite markets reducing the chances of an August cut to the base rate following Wednesday's inflation print. Hopefully the Bank of England will have similar courage.
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Justin Moy
Managing Director at EHF Mortgages
This is a significant move by NatWest, which will appeal to new borrowers in the lender's quest to stay competitive. Even with sticky inflation, lenders are looking to jump on a positive wave of mood as activity increases.
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Graham Cox
Director at Bridging Hub
Further cuts from a major mortgage lender is good news for borrowers. The question now is whether these reductions will hold in the face of this weeks stickier than expected inflation numbers.
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Hannah Bashford
Director at Model Financial Solutions
The war of rates is still raging. Not one to be left behind, even though they're small changes, the rate changes from NatWest is symbolic given the inflation data released yesterday. Hopefully the competition between banks and a tussle to be at the top and win business for the second half of the year will mean rates continue to fall throughout the summer.