Lender reduces pricing on new business, remortgage and additional borrowing products
NatWest has reduced rates across a range of residential and buy-to-let products for new and existing borrowers, as well as for additional borrowing.
On the residential side, selected two-year fixed purchase deals have been cut by up to 20 basis points. At 80% loan-to-value (LTV), two products with fees of £995 and £1,495 now stand at 3.96% and 3.91% respectively. At 60% LTV, the two-year fix with a £995 fee has been reduced from 3.75% to 3.67%, while the version with a £1,495 fee has moved down by eight basis points to 3.62%.
Remortgage pricing has also been lowered. The 60% LTV two-year fixed remortgage with a £995 fee has been cut by 10 basis points to 3.73%. The equivalent 60% LTV option with a £1,495 fee has been reduced to 3.68%.
In the buy-to-let segment, purchase rates have fallen at 75% LTV. The two-year fixed with a £995 fee has been trimmed by 10 basis points to 4.01%, while the 75% LTV deal carrying a £3,499 fee has been reduced from 3.58% to 3.48%.
Five-year fixed buy-to-let remortgage products at 75% LTV have also seen reductions. The option with a £4,999 fee has moved from 3.99% to 3.89%, and the product with a £5,999 fee has been cut by 10 basis points to 3.79%.
NatWest has additionally lowered rates across its shared equity, first-time buyer, green and standalone additional borrowing ranges.
“NatWest is bringing down the cost of its fixed rates for borrowers with a range of deposit sizes,” commented Aaron Strutt, product and communications director at London-based mortgage broker Trinity Financial. “The bank’s cheapest two-year fix will be 3.62% and its best five-year fix will be 3.84%.
“More of the lenders are improving their pricing again and there are not so many rate hikes at the moment. Mortgage rates are a bit more expensive than they were but not much.
“The next MPC meeting is on the 19th March and with the money markets predicting a 70% probability of a base rate cut, we may well see a few more price reductions soon.”
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