"With the promising inflation print on Wednesday, and with some big lenders making moves to lower rates earlier this week, it is no surprise that we are now seeing the likes of NatWest follow suit."
NatWest has announced a further round of rate cuts across its residential and buy-to-let mortgage ranges.
Selected residential purchase two and five-year fixed rates have reduced by up to 19bps and tracker rates have reduced by up to 0.40%, with the largest reduction on a two-year 60% LTV deal.
Remortgage rates have reduced by up to 0.20%, first-time buyer rates by up to 15bps, and Help to Buy remortgage rates by up to 22bps.
In its buy-to-let range, NatWest has reduced purchase rates by up to 31bps and remortgage rates by up to 21bps across selected two and five-year deals.
Green residential purchase and remortgage products have lowered by up to 17bps and buy-to-let green mortgages by up to 0.31%.
For existing customers, switcher rates have reduced by up to 0.20%, with four new switcher products and two new tracker products launching at 75% LTV.
As part of the changes, term end dates have moved to the 31st January.
Newspage asked brokers for their views.
Steven Hargreaves, adviser at The Mortgage Co, said: “This is the third large lender this week to reduce their fixed rates, suggesting the rate war is now truly underway. I would expect several other lenders to look to reduce their offerings in the next week or so, meaning mortgages are becoming cheaper, which is fantastic news for all. Another positive step for the fragile housing market.”
His views were shared by Gary Boakes, director of Salisbury-based mortgage broker, Verve Financial: “Good news breeds good news. With the promising inflation print on Wednesday, and with some big lenders making moves to lower rates earlier this week, it is no surprise that we are now seeing the likes of NatWest follow suit. I fully expect other lenders to continue this good news trend over the next few days regardless of any potential increase in the base rate.”
Meanwhile, Lewis Shaw, founder of Shaw Financial Services, suggested lenders are fighting for market share due to reduced transaction volumes: “With swathes of data showing house prices falling, mortgage demand shrinking and the economy contracting, lenders are now falling over themselves to shave off their margins to keep the machine turning and pick up business. I'd expect more of this in the coming weeks and not a moment too soon. For many lenders, the borrower cupboard is feeling bare."
But Justin Moy, founder at EHF Mortgages, said the lender was simply falling into line with the competition and questioned whether the ongoing rate cuts will come too late for the property market: “NatWest goes south with its rates, introducing a number of reductions across its full range. This repricing brings them closer to the rest of the high street lenders and is the first major move from a lender after Wednesday's inflation data. We are definitely moving in the right direction, but whether it is quick enough to save the property market we will have to wait and see."
