NatWest reduces fixed rates by further 0.45%

Rates have reduced across residential and buy-to-let purchase and remortgage deals.

Related topics:  Mortgages
Rozi Jones | Editor, Barcadia Media Limited
16th August 2023
"While the market buzzes with plummeting rates, there's a risk borrowers may adopt a wait-and-see stance, anticipating even lower rates."

NatWest has announced a new wave wave of fixed rate mortgage reductions, following rate cuts of up to 0.65% last week.

Purchase rates have reduced by up to 0.45% across selected two and five-year fixed rate deals, while remortage rates are down by up to 0.24%.

First-time buyer rates are down by up to 28bps, shared equity purchase rates have fallen by up to 23bps, and green buy-to-let purchase and remortgage deals have neem lowered by up to 35bps.

UK news agency, Newspage, sought the views of brokers.

Peter Stamford, director and Lead Adviser at Moor Mortgages, said: "For the second time in five days, NatWest is vying for market share, delivering wins for borrowers with rate cuts across the residential sector. While the market buzzes with plummeting rates, there's a risk borrowers may adopt a wait-and-see stance, anticipating even lower rates. It seems Tuesday's wage uptick data isn't deterring lenders, especially with anticipated positive inflation outcomes. As the month progresses, expect more aggressive moves from high street lenders, signalling strong lending and buying appetite."

Gary Boakes, director at Verve Financial, commented: "With lenders now realizing that their hasty rate increases in June had killed the purchaser market, they are all backtracking and lowering rates, which is great, but it feels like they could be doing more if they really want to get people back out looking. But as always, good news and any rate reductions are welcome in this current market."

Ranald Mitchell, director at Charwin Private Clients, added: "It is heating up at the sharper end of the market and how low will they go? My only concern is that whilst market rates tumble, borrowers will not jump at the opportunity, reverting to the wait-and-see approach, hoping that they will drop further. This is where brokers can provide appropriate reassurance in between re-broking their entire sales pipelines."

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