NatWest bring rates down again with two-year fixes from 3.62% for mortgages up to £2 million
NatWest has implemented a broad set of rate reductions across its mortgage product range for new business, existing customers and additional borrowing. The changes span purchase mortgages, remortgages, first-time buyer deals, and buy-to-let products, with many fixed-rate options seeing cuts to their interest rates.
For two-year fixed purchase deals, reductions reached up to 0.19% and other loan-to-value tiers saw cuts ranging from about 8 to 20 bps, depending on product fee and deposit size. Five-year fixed purchase products also saw modest reductions, typically between 1 and 11 bps across various LTV levels. In the remortgage segment, two-year fixes were lowered by up to 15 bps at some LTVs, while five-year fixes saw reductions as well.
Aaron Strutt, product director at Trinity Financial, says: “NatWest is bringing down the cost of its fixed rates for borrowers with a range of deposit sizes. The bank’s cheapest two-year fix will be just over 3.60% and its best five-year fix will be below 3.85%. More lenders are improving their pricing again, and there are not so many rate hikes at the moment. Mortgage rates are a bit more expensive than they were but not much.
"The next MPC meeting is on the 19th March, and with the money markets predicting a 70% probability of a base rate cut, we may well see a few more price reductions soon. More of the lenders are telling us they are busy with new enquiries, particularly from first-time buyers and those remortgaging, especially with around 1 million homeowners coming off of cheap five-year fixed rates this year.”
Does NatWest offer generous mortgage income multiples?
NatWest recently changed its residential Loan-to-Income (LTI) calculations, enabling many homebuyers and remortgaging customers to access larger mortgage loan sizes. The bank consistently offers many of the cheapest fixed- and tracker-rate mortgages available in the market.
Anyone applying for a NatWest mortgage earning over £75,000 or £100,000 jointly will now be able to access up to 6.0x income, up from 5.5x, provided they have a deposit of at least 25% and they have a good credit score. For single or joint applicants earning over £40,000, the income multiple is also being raised to 5.5x times salary from 5.0x again when they have a deposit of at least 25%. These changes only apply to capital and interest mortgages, although higher-income multiple interest-only mortgages are available to borrowers with a clear interest-only repayment strategy.
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The information contained within was correct at the time of publication but is subject to change.
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