NatWest Reduces Fixed-Rate Mortgages Amid Competitive Market

NatWest has recently announced a reduction in selected new business fixed-rate offers across its purchase and remortgage ranges by up to 19 basis points.

The adjustments include reductions in two-year fixed rate mortgages for home purchasing, two-year fixed remortgages, first-time buyer options, and Help to Buy shared equity remortgage products.

As part of these changes, NatWest’s two-year term end dates have moved from 30 November 2026 to 31 December 2026, while five-year term end dates have shifted from 30 November 2029 to 31 December 2029.

This announcement follows a broader trend in the mortgage market, where major banks like HSBC and Barclays are also slashing home loan costs. NatWest was the first to announce its reduced rates, cutting the lowest rate on a five-year fixed mortgage from 3.89% to 3.77%. This product includes a fee of £1,495.

HSBC is set to reveal specific details of its own rate cuts shortly, while Barclays has introduced several sub-4% options aimed specifically at those remortgaging and home purchasers with a sizeable deposit.

Craig Fish, director at Lodestone Mortgages & Protection, commented on the competitive landscape among lenders. He noted that such reductions signify a revitalization of interest in the property market.

From tomorrow, potential borrowers will find NatWest’s lowest five-year fix available to home buyers with a 40% deposit at 3.77%. For a £200,000 mortgage over 25 years, this would equate to a monthly payment of approximately £1,033.

This comes in stark contrast to the market average for five-year fixed mortgages, which currently stands at around 5.2% according to Moneyfacts. As competition ramps up, home buyers and remortgagers are encouraged to explore their options promptly.

In the context of broader economic conditions, it is anticipated that borrowing rates might continue to adjust as lenders compete for customers, ultimately benefiting those looking for mortgage solutions.