"To see rate reductions of this kind is fantastic and hopefully a sign of things to come in 2023."
NatWest for Intermediaries has reduced selected two and five-year fixed rates.
Across its purchase range, NatWest has announced reductions of up to 47bps and 54bps on selected two and five-year deals.
Remortgage rates have reduced by up to 55bps and 50bps across two and five-year products, while switcher rates have seen reductions of up to 55bps and 39bps respectively.
Gary Boakes, director at Verve Financial, said: "NatWest had been so competitive all year, but due to service levels increased their rates significantly after the mini-Budget. With service levels now at seven days, hopefully these rate reductions are just the start for NatWest. However, what is disappointing is that there is only one fixed rate product under 5% — a 60% LTV five-year fixed remortgage. With other lenders now reducing rates to under 5%, this seems like a missed opportunity for NatWest. That said, let's keep the good news and rate reductions coming. I have already had conversations with customers whose rates we will be lowering tomorrow. Every little helps in the current climate."
Justin Moy, managing director at EHF Mortgages, commented: "While all interest rate reductions are very welcome, NatWest had some ground to catch up with the leading lenders. Most of the announced deals are still in the 5%s and 6%s, and current market-leading fixed rates start from 4.65%. NatWest has plenty of opportunity to cut rates further. All that being said, those staying with NatWest on a product transfer, or looking to port their current mortgage on a purchase, will be delighted."
Imran Hussain, director at Harmony Financial Services, said: "This is welcome news for many in the market looking to purchase their first home or even remortgage. To see rate reductions of this kind is fantastic and hopefully a sign of things to come in 2023. There's a chance more lenders will follow suit and look to become more competitive as we head into the New Year."
Ben Tadd, director at Lucra Mortgages, added: "After witnessing rates being cut on a widespread basis over the past few weeks, NatWest reducing their rates spells further good news for mortgage borrowers up and down the country. With mortgage lenders now starting to turn their attention to 2023 lending targets, we should be seeing the start of a small price war in the mortgage market. With lenders having smashed through their 2022 lending targets much earlier than anticipated this year, mortgage lenders will now be looking to win more and more business in the coming weeks in order to start building their pipelines back up. This will ensure they are on track to meet their 2023 lending objectives. As a result, lenders will need to continue pricing their rates more aggressively so as to increase their market share to win the business levels they need to meet their lending targets."
