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NatWest reduces fixed rates by up to 0.19% as lenders look "to grab some market share by the end of the year"

Journalist: Justin Moy, Contributing Editor

ended 02. September 2024

Another day, another high street lender cuts fixed rates. NatWest has this morning announced a number of mortgage rate cuts of up to 0.19% for those looking for fixed deals, helping homebuyers, first-time buyers, those remortgaging and existing borrowers. Newspage asked brokers and other experts for their views, bottom.

 

13 responses from the Newspage community

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Stephen Perkins
Managing Director at Yellow Brick Mortgages
Forget yoga, meditation or three Shredded Wheat, announcements of rate reductions are the best way to start the week. Lenders continue to back the economy despite plenty of doom and gloom from the government. These reduced rates are warmly welcomed by borrowers and are setting up 2025 to be a booming year in the property market.
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Justin Moy
Managing Director at EHF Mortgages
This is another hugely positive move by NatWest and just adds to the ongoing momentum in the mortgage market. Lenders are looking to grab some market share by the end of the year. Cheaper rates, coupled with product innovation and better stock levels are resulting in a more positive mood in the property world at the moment. Other lenders will likely want to make a similar move over the coming days to remain competitive.
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Emma Jones
Managing Director at Whenthebanksaysno.co.uk
What a fantastic start to September. The nights may be starting to draw in but the momentum that started over the summer continues. Lenders are now in a serious battle for market share and borrowers are the winners.
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Mark Eaton
COO at April Mortgages
Though rates continue to edge down, uncertainty persists with potential inflation rises and the upcoming Autumn Budget. While rate cuts get a lot of attention, in our experience borrowers increasingly value not just mortgage rates but also the certainty that comes with fixed payments. After two years of market volatility, many are questioning whether they want to face rate fluctuations every few years. Long-term fixed rates offer protection against economic uncertainty, providing peace of mind and flexibility in financial management, especially important as mortgages are often the largest monthly expense.
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Riz Malik
Independent Financial Adviser at R3 Wealth
NatWest has kicked off the week by announcing additional rate cuts across their product range, bringing further joy to borrowers. With the Bank of England’s base rate decision set for the 19th of this month, we can anticipate shifts in mortgage pricing as the markets react to potential changes in interest rates.
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Ben Perks
Managing Director at Orchard Financial Advisers
Natwest haven't been reducing rates as quickly as others over the past few weeks, so it's great to see them announce cuts this morning. I think there is plenty more to come from NatWest over the final few months of the year.
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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
NatWest's latest rate cut is another clear signal that mortgage lenders are pulling out all the stops to reignite the housing market. Lenders are fiercely competing to offer the most attractive deals and there is now a real momentum building. This flurry of rate reductions is a positive step towards finding that sweet spot where consumer confidence rebounds, and the property market gets back on track. It's an exciting time for potential buyers, affordability is improving, and the window of opportunity is wide open.
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Rohit Kohli
Director at The Mortgage Stop
Another positive start to the week as NatWest cuts rates again across their product range. All eyes are moving onto next week's inflation data and, crucially, the following week when the Bank of England meet. Until then we expect lenders to continue to jostle for position, which will only benefit borrowers.
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Louis Mason
Content and Communications Director at Oportfolio Mortgages
Any rate reduction news on a Monday morning is very welcome in my books. But am I impressed? Not overly, to be honest. I don't think I will be until rates below 4% are more common among the big six lenders. Last week we saw lenders like Nationwide, HSBC, and Barclays reducing rates below 4%. I think as an industry we won't be able to REALLY start celebrating until we can offer our clients an array of sub 4% products.
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Gabriel McKeown
Head of Macroeconomics at Sad Rabbit - Substack Newsletter
NatWest is not just cutting rates; it's cutting a path forward with the announcement of rate slashes across the board. Yet, with the Bank of England's base rate remaining stable at 5%, the move suggests NatWest is banking on falling swap rates, which directly impact mortgage pricing more than the base rate itself. By lowering rates, NatWest could be positioning itself as a leader in a potential mortgage rate war, enticing customers with more affordable options. However, if this strategy proves successful, it could trigger a broader trend of further rate reductions. Consequently, borrowers should remain vigilant, ready to seize opportunities as they arise in this dynamic landscape.
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Darryl Dhoffer
Founder at The Mortgage Geezer
NatWest has announced another rate reduction, bringing welcome relief to borrowers. The removal of their dual pricing cape means more competitive rates and increased options for consumers seeking affordable financing.
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Elliott Culley
Director at Switch Mortgage Finance
NatWest have reduced rates across the board which is fantastic news for borrowers. Expect the rate reductions to keep NatWest in line with other lenders rather than be market leading. It's great to see lenders continuing to have confidence in the market. Long may it continue.
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Olivia Harland
Senior Mortgage Consultant at Cleerly Limited
It is great timing by NatWest to reduce rates just as the property market emerges from its traditional Summer lull! Rates below 4% are now becoming commonplace in the High Street, and I have no doubt that the competitors will respond with their own cuts - which makes it a great time to be looking for a new mortgae. Lenders will have targets to hit by the end of th eyear, and the coming 3 months are the last chance to do that before things slow down for Christmas. Everyone - whether you're a first time buyer, home mover or remotgaging; should benefit from the ongoing mortgage price war!