- The latest price change follows yesterday’s cuts by HSBC, TSB and Barclays
NatWest is the latest bank to announce mortgage rate cuts for homeowners refinancing their mortgages.
The new pricing follows yesterday’s rate cuts by HSBC, TSB and Barclays.
From tomorrow, NatWest will reduce interest rates on mortgage repurchases by up to 0.16 percentage points.
Mixed message: NatWest is cutting rates on deals aimed at people refinancing their mortgages, but raising rates for first-time buyers and home-movers
However, first-time homebuyers and those locking in a two- or five-year loan could see their rates rise by as much as 0.15 percentage points.
Yesterday, HSBC caused the biggest stir in the mortgage market by cutting rates across its entire product range, with reductions of up to 0.24 percentage points for first-time buyers, home movers and homeowners.
Its cheapest product is now a five-year fixed-rate mortgage of 3.84 per cent, aimed at home buyers with a deposit of at least 40 per cent.
On a £200,000 mortgage repaid over 25 years, that would mean paying £1,038 a month.
This is the second cheapest deal on the market, after NatWest’s 3.83 per cent rate with a fee of £1,495.
HSBC’s three-year solution aimed at home buyers purchasing with a 40 per cent deposit is also a better buy, charging 4.14 per cent with an attached fee of £649.
It also offers a market-leading three-year fixed rate for buyers purchasing with a 25 per cent deposit at 4.39 per cent, again with £649 in fees.
Nicholas Mendes, mortgage technical manager at broker John Charcol, said: ‘NatWest’s recent rate cut appears to be a swift reaction to HSBC’s pricing today.
‘Currently, NatWest’s rate of 3.83 per cent with a fee of £1,495 puts them in direct competition with Barclays and HSBC for the best deals.
‘However, HSBC’s current offer stands out with a rate of 3.84 per cent and a lower fee of £999, which could be more attractive to borrowers despite the slightly higher rate compared to NatWest’s 3.83 per cent with a fee of £1,495.
‘For those with a Premier account, HSBC’s 3.81 per cent offer is now the best buy, highlighting how having a Premier current account can make a product particularly attractive.
‘It will be interesting to see how Barclays and HSBC react or whether this latest move by NatWest is aimed at bringing the broker’s offering in line with the offerings available directly to borrowers through NatWest.’