Copy article

TSB and NatWest see rates fall ahead of Budget next month: "Some welcome relief for borrowers"

ended 27. October 2025

TSB and NatWest have announced they are cutting rates ahead of the Budget next month with brokers saying the move is " welcome relief for borrowers".

Rate cuts of up to 0.2% from TSB, and up to 0.21% from NatWest, with the most generous reductions for the shorter-term deals, such as a 2-year fixed.

With NatWest and TSB joining the likes of Barclays and Santander last week with rate reductions, experts say it's finally some positive news for those moving home as well as those looking for new mortgage deals.

Barclays announced several fixed-rate cuts for those looking to move home or buy their first home, by up to 0.1% – and HSBC and Santander also revealed a cut to its rates.

Brokers hailed the news.

Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, said: "Some significant changes in individual products with both lenders, the trend of shorter 2-year deals becoming cheaper than the longer 5-year options continues, but that doesn't mean they are the best products, as borrowers should look for advice from a qualified broker before they proceed with any change of deal or application. 

“It's likely to be a quiet few weeks whilst buyers wait for Budget news, but those with expiring mortgage deals can jump in now and grab a decent new rate.

Vijay Rabadiya, Founder & Director at Borehamwood-based The Mortgage Vine, said he had seen a “turning point in sentiment".

He added: "Lenders have been cautiously holding back for much of the autumn, waiting to see how market conditions would play out before the Budget. The fact that multiple high-street names have moved almost simultaneously shows renewed appetite to capture early pipeline business before the year end. 

"The sharpest cuts are on 2-year fixes, which suggests lenders are confident that rates have peaked but are not yet ready to commit heavily to long-term reductions. That’s a strong signal that banks believe inflationary pressure is easing and that we may be at the top of the interest-rate cycle. 

“We’ve reached a turning point in sentiment. Falling swap rates are giving lenders the confidence to compete again, and borrowers are the winners... for now. But with global markets still sensitive to inflation and policy shifts, this window of opportunity could be short-lived. Acting early could be the difference between securing a market-low rate and missing the wave.”

Michelle Lawson, Director at Fareham-based Lawson Financial, said the cuts are welcome.

She added: “Good news for borrowers with a bit of stability in the mortgage market and rates going in the right direction. Rates are just jostling rather than for panic.”

Ranald Mitchell, Director at Norwich-based Charwin Mortgages, said the cuts could get the housing market moving again.

He continued: "It’s great to see lenders cutting rates again, especially with so much apprehension around the Budget and what it could mean for UK households. With living costs still high and disposable incomes under pressure, even small reductions make a big difference to confidence. 

“Borrowers have been waiting for a sign that lenders are still willing to compete, and this week’s moves from the major banks show exactly that. Cheaper mortgages are essential to keep the housing market alive and kicking, giving buyers and movers a reason to act rather than wait.”

Ben Perks, Managing Director at Stourbridge-based Orchard Financial Advisers, said it shows banks are jostling for business.

He added: “Lenders are starting to fight for business ahead of the Budget announcement. It’s widely thought that The Chancellor could bring in changes that stifle the property market, so lenders are reducing to try and increase lending ahead of this. Hopefully more Lenders join this scrap for business and borrowers will see a selection of slightly improved rates.”

Jack Tutton, Director at Fareham-based SJ Mortgages, said borrowers should act now ahead of the Budget.

He continued: "TSB and NatWest have followed Barclays and HSBC’s lead and cut some of their rates, these cuts are a result of improving conditions in the financial markets. It’s important for mortgage holders to review their options ahead of the Budget next month should their deal be approaching its end. 

“The Budget could throw the markets depending on the Chancellor's decisions, therefore getting something secured ahead of this could pay dividends.”

David Stirling, Independent Financial Adviser at Belfast-based Mint Wealth Ltd, agreed, adding: "Some welcome relief for borrowers as TSB and NatWest have announced rate reductions coming in this week, following similar moves from Santander and HSBC last week. 

“Whether this momentum will continue remains to be seen, with the cynical among us thinking that it’s possible lenders are now eyeing their year-end lending targets and Christmas bonuses, prompting a push for new business. However, this downward trend could reverse quickly with the upcoming Autumn Budget, so borrowers should act to secure current rates.”
 

8 responses from the Newspage community

Copy all

Star Quote
Copy

Editor
Justin Moy
Managing Director at EHF Mortgages
Some significant changes in individual products with both lenders, the trend of shorter 2-year deals becoming cheaper than the longer 5-year options continues, but that doesn't mean they are the best products, as borrowers should look for advice from a qualified broker before they proceed with any change of deal or application. It's likely to be a quiet few weeks whilst buyers wait for Budget news, but those with expiring mortgage deals can jump in now and grab a decent new rate.
Copy

Editor
Michelle Lawson
Director at Lawson Financial
Good news for borrowers with a bit of stability in the mortgage market and rates going in the right direction. Rates are just jostling rather than for panic.
Copy

Editor
Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
It’s great to see lenders cutting rates again, especially with so much apprehension around the Budget and what it could mean for UK households. With living costs still high and disposable incomes under pressure, even small reductions make a big difference to confidence. Borrowers have been waiting for a sign that lenders are still willing to compete, and this week’s moves from the major banks show exactly that. Cheaper mortgages are essential to keep the housing market alive and kicking, giving buyers and movers a reason to act rather than wait.
Copy

Editor
Ben Perks
Managing Director at Orchard Financial Advisers
Lenders are starting to fight for business ahead of the Budget announcement. It’s widely thought that The Chancellor could bring in changes that stifle the property market, so lenders are reducing to try and increase lending ahead of this. Hopefully more Lenders join this scrap for business and borrowers will see a selection of slightly improved rates.
Copy

Editor
Jack Tutton
Director at SJ Mortgages
TSB and NatWest have followed Barclays and HSBC’s lead and cut some of their rates, these cuts are a result of improving conditions in the financial markets. It’s important for mortgage holders to review their options ahead of the budget next month should their deal be approaching its end. The budget could throw the markets depending on the Chanellors decisions, therefore getting something secured ahead of this could pay dividends.
Copy

Editor
David Stirling
Independent Financial Adviser at Mint Wealth
Some welcome relief for borrowers as TSB and NatWest have announced rate reductions coming in this week, following similar moves from Santander and HSBC last week. Whether this momentum will continue remains to be seen, with the cynical among us thinking that it’s possible lenders are now eyeing their year-end lending targets and Christmas bonuses, prompting a push for new business. However, this downward trend could reverse quickly with the upcoming Autumn Budget, so borrowers should act to secure current rates.
Copy

Editor
Dariusz Karpowicz
Director at Albion Financial Advice
The mortgage market's playing a curious game of musical chairs right now. Whilst TSB and NatWest have joined the rate-cutting party with reductions up to 0.21%, savvy borrowers should note that two-year fixes are becoming cheaper than five-year deals, though this doesn't automatically make them the better choice.
You're seeing lenders scramble for business before Wednesday's Budget, which could throw a spanner in the works. The current cuts offer welcome relief if your deal's expiring, but don't expect this trend to last. Property market jitters and the Chancellor's pending announcements mean these improvements could reverse quickly. Best advice? If you need a mortgage now, grab these rates whilst you can. Sitting on the fence waiting for further drops is risky; lenders are likely positioning themselves defensively ahead of potential Budget curveballs that could push rates back up.
Copy

Vijay Rabadiya
Founder & Director at The Mortgage Vine
Lenders have been cautiously holding back for much of the autumn, waiting to see how market conditions would play out before the Budget. The fact that multiple high-street names have moved almost simultaneously shows renewed appetite to capture early pipeline business before the year end.

The sharpest cuts are on 2-year fixes, which suggests lenders are confident that rates have peaked but are not yet ready to commit heavily to long-term reductions. That’s a strong signal that banks believe inflationary pressure is easing and that we may be at the top of the interest-rate cycle.

We’ve reached a turning point in sentiment. Falling swap rates are giving lenders the confidence to compete again, and borrowers are the winners... for now. But with global markets still sensitive to inflation and policy shifts, this window of opportunity could be short-lived. Acting early could be the difference between securing a market-low rate and missing the wave.