NatWest will cut rates on new and existing residential and landlord product ranges by up to 40 basis points from tomorrow (21 September).  

Highlights among the high street lender’s reductions include:   

New business   

• Purchase — rate cuts of up to 19bps and 15bps on selected two- and five-year deals  
• Purchase tracker — rate reductions of 40bps on two-year 60% loan-to-value deals  
• Remortgage — rate cuts of up to 20bps and 11bps on selected two- and five-year offers  
• First-time buyer — rate reduction of up to 15bps on selected two- and five-year loans  
• Buy-to-let purchase — rate cuts of up to 31bps and 20bps on selected two- and five-year deals  
• BTL remortgage — rate reduction of up to 21bps and 17bps on selected two- and five-year offers  

Existing customers  

The firm will cut switcher rates by up to 20bps and 11bps on selected two- and five-year offers.  

It will launch four switcher products and a pair of tracker products covering two- and five-year offers deals at 75% LTV, while pulling six similar deals.  

John Charcoal mortgage technical manager Nicholas Mendes welcomed the move, adding that he expects to see more cuts from lenders this week.  

On Thursday, the Bank of England’s Monetary Policy Committee is widely expected to lift the base rate by 25bps to 5.5%, the 15th time since December 2021 as it battles inflation.  

However, forecasters say the BoE is nearing the top of its rate-raising cycle and will hold rates at this level until the end of the year after this week’s hike.  

Easing swap rates since the summer, which affect mortgage pricing, has allowed lenders to lower the cost of home loans.  

Mendes says: “While reductions are expected in the current market, it reassuring to see them prior to an MPC announcement.  

“I suspect this will be one of many reduction notices we see this week.”  

NatWest adds that two-year term end dates will move from 31 December 2025 to 31 January 2026.  

Five-year term end dates will move from 31 December 2028 to 31 January 2029.  

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