NatWest becomes the latest major mortgage lender to cut rates on selected purchase, remortgage and landlord deals by as much as 65 basis points.
The high street lender says its changes, for new and existing borrowers, come to market on Friday (11 August).
Highlights of its reductions include:
New business
Two-year fixed-rate purchase
A 90% loan-to-value offer falls by 37 basis points to 6.37%, with a £995 fee
Two-year fixed-rate remortgage
A 90% LTV deal falls by 45bps to 6.29%, with a £995 fee
Five-year fixed-rate purchase
A 90% LTV loan falls by 65bps to 5.99%, with no fee
Five-year fixed-rate remortgage
A 90% LTV deal falls by 65bps to 5.99%, with no fee and £250 cashback
BTL two-year fixed rate purchase
A 60% LTV offer falls by 25bp to 6.29%, with a £1,495 fee
Existing customers
Two-year fixed-rate residential switcher
An 85% LTV deal falls by 15bps to 6.19%, with a £995 fee
Five-year fixed-rate residential switcher
A 75% LTV loan falls by 15bps to 5.58%, with a £995 fee
The lender will also lunch new products such as a two-year fixed-rate purchase offer at 85% LTV, at 6.59%, with no fee and £250 cashback – and a five-year fixed-rate purchase loan at 85% LTV, at 5.72%, with a £995 fee and cashback £250.
The moves follow the Bank of England’s base rate rise by 25bps to 5.25% last week, its 14th consecutive rise taking it to the highest level for 15 years.
The central bank is battling inflation, which dropped to 7.9% in the year to June from 8.7%, but still remain almost four times higher than its 2% target.
However, lenders say swap rates have fallen from their early July peak, allowing them to cut rates.
Halifax, Nationwide, HSBC and TSB are among other major lenders to have cut rates this week.
