Lenders are adjusting their offerings following the Bank of England’s rate cut last week and NatWest is leading the charge today by reducing rates across a wide range of products.
The big high street lender is making changes to its New Business, Existing Customer and Additional Borrowing (ADBO) product ranges and end dates.
Rates have decreased of up to 16bps and 10bps on selected 2- and 5-year deals on purchase and other rate reductions have been made across the board.
Brokers have been quick to tell Newspage their thoughts.
EVERY LITTLE HELPS
Riz Malik, independent financial adviser at R3 Wealth, says: “This week will be an interesting week to see how lenders reacted to the reduction in market pricing last week.
“By Friday, we should see lenders make some decent cuts but that may be it for the time being. Every little helps! Households will welcome any savings they can make in no-growth Britain.”
MAIN FOCUS
Justin Moy, managing director at EHF Mortgages, says: “The first of many mortgage lenders that will look to reprice given the recent base rate cut and more importantly the economic forecasts for the UK this year.
“Significant cuts of up to 0.36% will be of interest to those borrowers looking to grab a cheaper deal on their remortgage. This will inevitably be the main focus for lenders in 2025 as the purchase market may slow after the impending stamp duty changes.”
REVERBERATIONS
Ben Perks, managing director at Orchard Financial Advisers, says: “It may be late in the day but NatWest kick off the week with some nice rate cuts.
“These reductions will reverberate through the lender community now and more cuts are sure to come this week.”
WELCOME NEWS
Rohit Kohli, director at The Mortgage Stop, says: “NatWest’s decision to cut rates by up to 0.36% is welcome news, particularly for remortgage clients who stand to benefit the most.
“As the first major high street lender to act following the Base Rate cut and improved swap rates, this move could encourage wider lender action. However, Thursday’s inflation report will be pivotal in shaping future rate expectations.”
ICE-BREAKING
Dariusz Karpowicz, director at Albion Financial Advice, says: “NatWest breaks the ice with a refreshing rate cut! As the first major high street bank to trim their mortgage rates by up to 0.36%, they’ve set the stage for what could be a domino effect across the lending landscape.
“With swap rates heading south and the recent Base Rate reduction, this move by NatWest couldn’t be more timely for homeowners, particularly those eyeing a remortgage.
“While the purchase market might take a breather due to upcoming stamp duty changes, these rate improvements could provide a welcome boost to household budgets in our rather sluggish economy. Keep your eyes peeled, as other lenders are likely to follow suit.”
