NatWest makes mortgage rate cuts and updates end dates

05 December 2024

NatWest is set to implement changes effective tomorrow (6th December) for its New Business, Existing Customer, and Additional Borrowing (ADBO) product ranges, alongside updated end dates.

The end dates for the 2-year term will move from 31st March 2027 to 30th April 2027.

For the 5-year term, the end dates will change from 31st March 2030 to 30th April 2030.

New Business rate changes will include a rate decrease of up to 0.10% and 0.14% on selected 2-year and 5-year purchase deals.

High-value purchases will see a decrease of up to 0.10% and 0.13%.

Remortgages will have a rate decrease of up to 0.16% and 0.07% on selected 2-year and 5-year deals; high-value remortgages will decrease by up to 0.16% and 0.06%.

Shared equity purchases will see a rate decrease of up to 0.10% and 0.14% on selected 2-year and 5-year deals.

The Help to Buy shared equity remortgage will have a decrease of up to 0.16% and 0.07%.

Buy-to-let purchases will decrease up to 0.34% and 0.36%, while the remortgage rate will decrease by up to 0.39% and 0.35% on selected deals.

Green purchase rates will decrease by up to 0.10% and 0.14%, while green remortgage rates will decrease by up to 0.16% and 0.06%.

Green BTL purchases will decrease by up to 0.32% and 0.19%, and remortgage rates will decrease by up to 0.29% and 0.23% on selected 2-year and 5-year deals.

Nicholas Mendes, head of marketing and mortgage technical manager at John Charcol, said: “The recent rate cuts by NatWest are fantastic news for borrowers, and the moves by HSBC reflect a broader trend among lenders capitalising on a period of stability in swap rates after a month of volatility.

“This volatility was driven by market adjustments to future base rate expectations, influenced by inflationary pressures highlighted in the Budget.

“That said, it’s important to manage expectations.

“These cuts only scratch the surface following the increases seen in recent weeks, and borrowers will need to be patient before rates return to the lower levels we witnessed earlier this year.

Mendes added: “At the start of the year, markets had priced in a reduction in base rates beginning in February, with a total of five cuts anticipated in 2025.

“However, this outlook has now softened to expectations of three or four cuts at most.

“As markets have stabilised, lenders such as NatWest, Barclays, and HSBC have been quick to reprice, seizing the opportunity to attract borrowers before demand typically slows during the festive season.

“These adjustments allow lenders to position themselves competitively as borrower focus often shifts away from financial commitments during this period, with decisions postponed until the new year.

“Looking ahead, I anticipate lenders will continue to capitalise on any opportunities to build momentum, balancing service levels during the seasonal slowdown to ensure a strong start to 2025.”