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NatWest rate cuts: "NatWest have broken the mould"

Journalist: Riz Malik

ended 18. June 2024

Effective 20th June, NatWest have announced rate cuts across their New Business product range. Changes below. Newspage asked brokers for their views, bottom.

End dates

  • 2 year term end dates, moving from 30th September 2026 to 31st October 2026.
  • 5 year term end dates, moving from 30th September 2029 to 31st October 2029.

New Business Rate Changes:

  • Purchase: Rate decrease of up to 14bps and 12bps on selected 2 and 5 year deals.
  • Remortgage: Rate decrease of up to 15bps and 17bps on selected 2 and 5 year deals.
  • Purchase – high value: Rate decrease of up to 13bps and 10bps on selected 2 and 5 year deals.
  • Remortgage – high value: Rate decrease of up to 13bps and 17bps on selected 2 and 5 year deals.
  • First-time buyer: Rate decrease of up to 10bps and 12bps on selected 2 and 5 year deals.
  • Shared equity - purchase: Rate decrease of up to 13bps and 10bps on selected 2 and 5 year deals.
  • Help to Buy shared equity – remortgage: Rate decrease of up to 13bps and 15bps on selected 2 and 5 year deals.
  • Green - purchase: Rate decrease of up to 13bps and 10bps on selected 2 and 5 year deals.
  • Green - remortgage: Rate decrease of up to 13bps and 15bps on selected 2 and 5 year deals

 

7 responses from the Newspage community

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Riz Malik
Independent Financial Adviser at R3 Wealth
Despite all the politico-economic turbulence, lenders are still willing to lend and NatWest, based on this evidence, want their piece of the pie. With the base rate decision looming, all eyes are on the main mortgage lenders and what they will do regardless of whether we see the first rate cut since 2020 on Thursday. Even if no cut comes, a dovish set of minutes has the potential to set borrowers free.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
These NatWest rate reductions won't set the world alight but will be welcomed by borrowers like a scrappy 1-0 for England. Take the points and move on. The question now is whether borrowers can get out of the group stage but sadly the Bank of England is the ref.
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Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
NatWest have broken the mould by making changes to their product pricing. With an interest rate decision due on Thursday, inflation out Wednesday and the election just around the corner, most lenders are holding firm on pricing until there is more certainty. NatWest have reduced rates across the board, so must be thinking that a Labour Government will usher in an era of rate cuts in the second half of 2024.
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Justin Moy
Managing Director at EHF Mortgages
Amid the political noise, this is a small but welcome rate cut from NatWest for new business. Applications have slowed across the industry in recent weeks so we could see a ripple of small changes in the next fortnight if inflation hits target or better this week. Small wins like this matter.
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Craig Fish
Director at Lodestone Mortgages
This is a positive move from one of the Big Six. It's more a boundary rather than a six but we'll take it. Brokers and borrowers alike will all be hoping that more will follow, and like the British summer finally, inject a bit of heat into a rather dull market.
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Rohit Kohli
Director at The Mortgage Stop
All reductions are welcome no matter how small and will deliver some optimism to borrowers. It’s unlikely we will see a base rate change on Thursday from the Bank of England who will want to maintain the air of neutrality during an election, however a positive set of inflation figures on Wednesday may pave the way for Threadneedle Street to to come off the fence they have been sitting on and signpost, with more more certainty, that a cut is on the horizon.
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Simon Bridgland
Director at Charwin Private Clients
At last, a lender willing to lay their cards on the table before this Thursday’s base rate decision. Well done NatWest for being bold and drawing a line in the sand. Their competition still seems as reluctant as a teenager giving their granny a Christmas kiss when it comes to countering the reductions NatWest have just laid down. My guess is that just like the teenager's, kiss it will be fleeting and with minimal lip service.