NatWest is making rate cuts of up to 39bps across selected purchase, remortgage and buy-to-let 2- and 5-year fixed rate mortgages tomorrow.
Newspage asked brokers whether the tide is turning and if more lenders could follow NatWest’s lead. Their views are below.
STALL SETTING
Ken James, Director at Contractor Mortgage Services: “NatWest have set out their stall ready for the Christmas market. This is a really positive step and we are seeing other lenders looking to ensure they get those last deals of 2024 coming through the doors.
“Fingers crossed this positivity can push through to 2025.”
OPTIMISTIC END
Katy Eatenton, Mortgage & Protection Specialist at Lifetime Wealth Management: “December is bringing an optimistic end to 2024, with three major lenders announcing rate cuts this week in the form of HSBC, NatWest and Coventry.
“As SWAP rates are slowly creeping down, more lenders should follow suit to get the last bits of business in before they shut up shop for Christmas.”
POSITIVE SHIFT
Iain Swatton, Director at Exemplar Financial Services: “NatWest’s rate cuts just before Christmas are a welcome gift for borrowers, bringing some much-needed festive cheer to the mortgage market.
“After weeks of rate hikes that felt more like Scrooge’s doing, this could mark the start of a positive shift. Borrowers will be hoping other lenders follow suit, making the season a little brighter for those looking to secure a mortgage or remortgage.”
PAYMENTS HEADING SOUTH
Simon Bridgland, Director at Release Freedom: “If rates continue to fall, it really could be a happy new year.
“Any December rate cut by a lender the size of NatWest should help see a flurry of other lenders follow for the winter. So borrowers could be delivered a Christmas present of their payments heading south.”
SENDING A SIGNAL
Daniel Hobbs, Managing Director at New Leaf Distribution: “A major lender like NatWest cutting rates is sure to send signals to other lenders.
“For a number of months ahead of the Budget rates were falling and, after a month-long hiatus, the mood in the mortgage market looks to be improving.”
TIDE IS TURNING
Emma Jones, Managing Director at Whenthebanksaysno.co.uk: “It’s starting to feel like the tide is turning.
“After a grim five weeks following the Autumn Budget, we’re finally getting some more upbeat news for borrowers. Let’s hope this sets the tone for 2025, bringing some much needed relief for mortgage borrowers.”
SEASONAL SLOWDOWN
Rohit Kohli, Director at The Mortgage Stop: “Rate cuts are always welcomed by borrowers, but this comes at a time when the market is seasonally slowing so will benefit fewer people.
“Hopefully other lenders follow suit and these reductions stick or, better still, continue into January.”
INCREASED STABILITY
Jack Tutton, Director at SJ Mortgages: “The mortgage market appears to be coming back stronger just in time for the festive season.
“NatWest’s latest cuts follow other lenders this week and signal a period of increased stability in the market.
“With millions of people needing to renew their mortgage next year, the hope will be that this current downward trend continues for the rest of the year and long into 2025.”
WINDS ARE CHANGING
Ben Perks, Managing Director at Orchard Financial Advisers: “This week has been mostly positive.
“For the first time since the Budget, we’ve seen more reductions than increases.
“It definitely feels like the winds are changing and hopefully they’ll continue to do so. Hopefully a period of interest rate calm over the next few weeks will propel us into the new year full of positivity.”
END-OF-YEAR CHEER
Justin Moy, Managing Director at EHF Mortgages: “Small improvements in Swap rates, which fixed rate mortgages are priced off, and increased market competition are pushing rates down and have enabled NatWest to give borrowers some end-of-year cheer.
“This may be the start of a January push by lenders to grab some market share. With millions of borrowers looking for a new deal in the coming months this is an important time for lenders to attract new business and hit their targets early.”
STRATEGIC REDUCTION
Dariusz Karpowicz, Director at Albion Financial Advice: “NatWest’s decisive move to reduce rates by up to 39 basis points represents a significant and welcome development in the mortgage market, potentially signalling a broader shift in lending dynamics.
“This strategic reduction across purchase, remortgage and buy-to-let products comes as a timely intervention in what has been a particularly challenging period for borrowers.
“While the economic landscape remains complex, with mixed signals from inflation data and the Bank of England’s monetary policy stance, NatWest’s initiative could indeed trigger similar responses from other major lenders.
“The modest uptick in property prices, combined with this rate adjustment, suggests we may be approaching a pivot point in the market. Let’s see how other lenders respond to this development.​​​​​​​​​​​​​​​​”
