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NatWest launches market-leading 5-year fixed rate - brokers divided

Journalist: Newsteam, Newsteam

ended 13. December 2024

From 16th December, NatWest is making changes to its New Business, Existing Customer and Additional Borrowing (ADBO) product ranges. Brokers say the 5-year 60% LTV product for new purchases with a £1,495 fee at 4.07% will be market-leading come Monday although one warned borrowers to beware “locking into long-term deals before rates start to drop”. Full details of the changes are below, comments from brokers bottom.

New Business Rate Changes:

  • Purchase: Rate decrease of up to 4bps on selected 5 year deals.
  • Purchase – high value: Rate decrease of 3bps selected 5 year deals.
  • Remortgage: Rate decrease of up to 3bps on selected 5 year deals.
  • Remortgage – high value: Rate decrease of 3bps on selected 5 year deals.
  • Shared equity - Purchase: Rate decrease of up to 4bps on selected 5 year deals.
  • Help to Buy shared equity - remortgage: Rate decrease of up to 3bps on selected 5 year deals.
  • Green - purchase: Rate decrease of 3bps on selected 5 year deals.
  • Green - remortgage: Rate decrease of 3bps on selected 5 year deals.

 

4 responses from the Newspage community

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Editor
Darryl Dhoffer
Founder at The Mortgage Geezer
NatWest are pulling the Christmas crackers early with these latest rate reductions. For new borrowers, come Monday 16th September, NatWest will be market-leading for 5-year fixed rates at 4.07% with a £1,495 arrangement fee. This certainly gives borrowers something to mull over as they sip their mulled wine.
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Editor
Mike Staton
Director at Staton Mortgages
Welcome to the mortgage Domino Rally. NatWest's reduction of all 5-year fixed rates is an attempt to lure clients into locking into long-term deals before rates start to drop. I strongly believe the base rate will be around the 3% mark this time next year so this move will safeguard NatWest’s profit margin for the next 5 years.
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Editor
Ben Perks
Managing Director at Orchard Financial Advisers
NatWest are showing a real eagerness to lend in the final few weeks of the year. Great news for borrowers and other lenders will have to follow suit if they want to compete.
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David Stirling
Independent Financial Adviser at Mint Wealth
To cap off a great week of rate cuts for borrowers, NatWest go again with their second sweep of reductions in a fortnight across their 5-year products. Borrowers should be rubbing their hands cheerily, as this follows on the back of Halifax, Santander and Barclays amongst others all reducing rates this week. The post-Budget blues appear to be dissipating at least temporarily, and hopefully these good vibes and rate cuts continue through Christmas into 2025. Whether next Thursday will bring an early Secret Santa gift in the form of a Bank of England rate cut we have yet to see.