Following many lenders increasing their mortgage rates over the past week or two, NatWest has just gone and blown the doors off, announcing some chunky reductions of up to 41bps from 25th October across its New Business, Existing Customer and Additional Borrowing (ADBO) product ranges. Brokers described the cuts as “highly aggressive” and “serious”. One said simply: “NatWest have made the other big lenders look rather silly this evening.”
what the experts say...
Darryl Dhoffer
Mortgage Expert
Managing Director at The Mortgage Geezer
"These are highly aggressive rate reductions from NatWest and are poised to disrupt the market. Their bold move could catch competitors off guard, as they appear determined to capitalise on the remaining business opportunities of 2024. Borrowers will be salivating at these reductions and the fact they come ahead of the Budget is an added bonus."
Ben Perks
Mortgage Expert
Managing Director at Orchard Financial Advisers
"NatWest have made the other big lenders look rather silly this evening. When others are increasing their rates, they have thrown the cat among the pigeons and announced some pretty chunky cuts to their product range. The message is clear; they will not be deterred from lending, they are not fearful of the upcoming Budget and they are very keen to lend in the last quarter of 2024. It's game on for borrowers."
Justin Moy
Mortgage Expert
Managing Director at EHF Mortgages
"Many of these rate cuts reverse those increases from last week, so it looks to be ‘business as usual’ after that blip in pricing. Purchase deals have some extra rocket power with larger cuts of up to 0.4%, again helping stimulate activity and will raise the eyebrow of other lenders. This is a great move by NatWest and others lenders will undoubtedly follow quickly."
Simon Bridgland
Mortgage Expert
Director at Release Freedom
"NatWest knock it out of the park with some huge rate drops. Things are set to heat up this week as pressure piles onto lenders to secure new business before the year is out. Lenders changing fixed rate deals in quick succession means we could be witnessing the start of a call to arms from lenders chasing down borrowers before we see in 2025."
Hannah Bashford
Mortgage Expert
Director at Model Financial Solutions
"It seems NatWest may be having buyers' remorse and are rewinding the increases of the past week or so, with some extra savings for borrowers on top. Whatever the reason for these cuts, these are certainly rate reductions that will turn heads. They will also help NatWest hit their year-end targets. Who will be next? It's hard to see other lenders not having to follow suit."
Katy Eatenton
Mortgage Expert
Mortgage & Protection Specialist at Lifetime Wealth Management
"NatWest clearly aren't too worried about the Budget as these are serious cuts. NatWest have just smashed it out of the park and their competitors will be wondering what's going on. After a week or so of rates rising, they are now going back down again. Other lenders will surely now follow and that's fantastic news for borrowers and the property market."
Rohit Kohli
Mortgage Expert
Director at The Mortgage Stop
"These types of U-turns are very welcome. Not only are Natwest reducing but in some cases the reduction looks to be more than the increases they put in place last week. While lenders need to react to market conditions, the increases that some of the major high street lenders announced over the past couple of weeks felt a little knee-jerk and that now looks to be the case."
Ken James
Mortgage Expert
Director at Contractor Mortgage Services
"NatWest have just hit us with a veritable smorgasboard of rate reductions, swimming against the tide of rate increases and flying the flag for those still looking to get a good deal in this ever-changing market. This will be hard for the big lenders to ignore as business will certainly be edging NatWest's way unless other lenders match or improve on what is being delivered to the market here."
Tony Castle
Mortgage Expert
Managing Director at PFG Mortgages
"NatWest now reducing rates quite significantly shows the volatility surrounding mortgage rates at the moment. Within a week they have increased rates and have now almost done a complete U-turn in decreasing. It’s going to be an interesting few weeks ahead that’s for certain. Borrowers locking in rates at the moment have to be on their toes with rate fluctuations."
