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NatWest and Virgin reduce fixed rates: "Hopefully these reductions are the aperitif ahead of the main course, a base rate reduction"

Journalist: Justin Moy, Contributing Editor

ended 31. July 2024

Ahead of tomorrow's base rate decision, both NatWest and Virgin Money have announced reductions to their range of fixed rates, with Virgin also launching a number of exclusive deals for those looking to remortgage (NatWest changes top, Virgin changes bottom screengrab). There are cuts for BTL and Product Transfers for Virgin, too. Newspage asked brokers for their thoughts, bottom.

 

6 responses from the Newspage community

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Stephen Perkins
Managing Director at Yellow Brick Mortgages
Hopefully these reductions are the aperitif ahead of the main course, a base rate reduction, by the Monetary Policy Committee tomorrow. The odds look good, and the economy needs it, but the Bank of England often disappoints.
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Ken James
Director at Contractor Mortgage Services
Rate cuts are always welcome but I do wonder if lenders are running out of steam, with small cuts all the fashion these days and big rate cuts left on the back-burner. The sentiment from many in the mortgage market is that a 0.25% base rate cut is highly probable. What we really need though is a shock to the system such as a 0.5% rate cut. This would go a long way to boosting optimism among borrowers. Lenders' reaction to any cut may be slow to come through, though, as I believe they have already priced a reduction into their current lending models. All eyes are now firmly set on Thursday at midday.
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David Stirling
Independent Financial Advisor at Mint Wealth
While these rate cuts are more than welcome they are unlikely to defibrillate the ailing mortgage market and what is required is a shock announcement from the Bank of England tomorrow. Rate cuts of 0.05% by lenders are rather pitiful, as the impact of this to a borrower is less than slight and seem to be released to get headlines.
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Simon Bridgland
Director at Charwin Private Clients
These new offerings from NatWest and Virgin are a true sign of confidence in a market bursting at the seams. The demand is there from borrowers who are desperate for cheaper money, knowing a base rate cut is looming on the horizon. Those tempted to wait until a cut in base rate comes should remember that lenders would have already priced in a potential movement so waiting in case a better option pops up could be a fools' errand for the time being.
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Graham Cox
Director at Bridging Hub
The summer mortgage wars continue with both Natwest and Virgin Money lowering rates in a bid to win business during August, a traditionally quiet month for property transactions. In addition, UK swap rates, upon which fixed rate mortgages are priced, have tumbled over the last month in anticipation of a base rate cut. Which is surely now only a matter of time.
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Hannah Bashford
Director at Model Financial Solutions
Ooh Aah just a little bit, Ooh Aah a little bit more: it seems lenders are taking a leaf out of Gina G’s book and slowly reducing rates. Although this is great, instead of tinkering around we could do with some decent reductions to reignite the market. This does look positive for a rate reduction tomorrow, though.