The rate reduction across its product portfolio is effective from today
NatWest Intermediary Solutions has announced that it is reducing rates across its product portfolio for both new business and existing customers, effective starting today, December 6.
For new business, the core range for purchases has seen rate reductions of up to 47 basis points (bps) and 54bps on two- and five-year deals respectively. Remortgage products have seen rate reductions of up to 55bps and 50bps on two- and five-year deals respectively.
Mortgage Guarantee Scheme products have seen reductions of 45bps and 50bps on 95% loan-to-value (LTV) two- and five-year deals.
Shared equity has seen rate reductions of up to 47bps and 49bps on two- and five-year deals, while Help to Buy shared equity for remortgage has been reduced by up to 76bps and 65bps on two- and five-year deals.
NatWest has also reduced rates on its green purchase products up to 47bps and 44bps on two- and five-year deals respectively, and on its green remortgage up to 50bps and 39bps on two- and five-year deals respectively.
For first-time buyers, rates have been reduced by up to 40bps and 54bps on two- and five-year deals respectively.
In terms of existing customers, the NatWest switcher rate has been reduced by up to 55bps and 45bps on two- and five-year deals respectively, while the high value rate has seen reductions of up to 45bps and 38bps on two- and five-year deals respectively.
The complete list of products that had their rates reduced today can be viewed on NatWest’s intermediary website.
“NatWest had been so competitive all year, but due to service levels, increased their rates significantly after the mini budget,” Gary Boakes, director at Verve Financial, commented. “With service levels now at seven days, hopefully these rate reductions are just the start for NatWest.
Justin Moy, managing director at EHF Mortgages, said that while all interest rate reductions are welcome, NatWest had some ground to catch up with the leading lenders.
“Most of the announced deals are still in the 5% and 6% [range], and current market-leading fixed rates start from 4.65%,” he noted. “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 NatWest’s decision to reduce rate 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,” Hussain added. “There’s a chance more lenders will follow suit and look to become more competitive as we head into the new year.”