NATWEST and TSB have announced mortgage rate cuts in the last 24 hours, as swap rates continue to improve and pressure to reprice on the high street continues. Brokers hailed the news, saying “mortgage rates continue to move in the right direction”.
NatWest announced that rates have been cut by up to 0.2% across purchase, remortgage, green and Buy to Let (BTL) products.
TSB announced that rates are cutting by up to 0.1% across their fixed house purchase and remortgage range.
This comes a week after Santander reduced its first-time buyer fixed rate mortgages at 85%, 90% and 95% loan-to-value (LTV) by up to 0.32%.
Brokers are encouraged that rates continue to tumble and expect the Bank of England to continue cutting its base rate.
Mortgage rates continue to move in the right direction
Katy Eatenton, Mortgage & Protection Specialist at Lifetime Wealth Management, said rates are moving downwards.
She added: “Mortgage rates continue to move in the right direction for borrowers as markets price in the likelihood of a reduction in the base rate. With unemployment rising and business confidence shot, it’s surely now a case of when the Bank of England acts, not if.
“Activity levels have really started to improve in February and March is shaping up to be a busy month as all the pent-up demand from the fourth quarter, which was delayed due to the Budget, feeds through.”
Stephen Perkins, Managing Director at Yellow Brick Mortgages, said this year was pivotal for first-time buyers.
He continued: “Lenders of all sizes continue to stoke the fire to keep the property market engine burning. Activity levels are starting to go through the gears whether as a result of rate reductions or criteria easing, such as lower deposit requirements.
“What’s very clear is that lenders are making getting a mortgage much more achievable for many more people. 2026 could be the year of the first-time buyer.”
The year of the first-time buyer
Shaun Sturgess, Director at Sturgess Mortgage Solutions, said lenders are targeting first-time buyers.
He added: “First-time buyers are having a field day right now, with lenders large and small clearly keen to target this type of borrower.
“It’s shaping up to be a busy spring period and swap rates continue to head south, which should further improve pricing.”
Justin Moy, Managing Director at EHF Mortgages, said momentum is picking up.
He added: “This looks like the start of another wave of High Street mortgage rate cuts, with swap rates showing further improvements this week.
“Whilst we are not quite as low as we saw in January, momentum is picking up as we enter the peak spring house-buying period.”
We expect more lenders to follow suit
Michelle Lawson, Director at Lawson Financial, said she expects more lenders to follow in cutting rates.
She continued: “Further rate cuts from major lenders and the expansion of more low or no deposit borrowing options is starting to open a lot more doors for borrowers.
“We expect more lenders to follow suit as they eye up business and are boosted by falling swap rates, which are the key to mortgage pricing.”
Craig Fish, Director at Lodestone Mortgages, said confidence is returning to the housing market.
He added: “NatWest and TSB cutting rates within 24 hours of each other tells you swaps are feeding through but this isn’t a rate war just yet. NatWest trimming by up to 0.20% across purchase, remortgage, green and BTL is meaningful. It shows confidence that funding costs are easing.
“But the fact lenders aren’t sprinting to slash further suggests margins are still tight and much of the recent swap improvement is already priced in. This feels like a slow, steady glide down, not a freefall.”
