NatWest lowers mortgage rates again and brings out 3.71% two-year fix
Quick Summary
Which lender has one of the lowest two-year fixes on the market? NatWest is now offering a fixed-rate mortgage at 3.71%—marking a noteworthy drop and signalling that lenders are eager to capture customers amid a softening rate environment. It is available for mortgages up to £2 million and has a £1,495 arrangement fee.
In a welcome move for home-buyers and remortgagers alike, NatWest has further reduced several of its fixed-rate mortgage deals, reinforcing the increasing competition in the UK mortgage market.
NatWest is now offering a fixed-rate mortgage at 3.71%—marking a noteworthy drop and signalling that lenders are eager to capture customers amid a softening rate environment.
NatWest has launched the most competitively priced five-year fix at 3.71%, and it is available to homebuyers borrowing between £25,000 and £2 million. There is a £1,495 arrangement fee, and applicants will need a 40% deposit to qualify.
Aaron Strutt, product director at Trinity Financial, says: "Some of the lenders have lowered their rates twice in the space of a week, which is quite unusual. If you are looking for a five-year fix then there is a lot of choice. NatWest also offers a sub-3.85 % five-year fix rate, while Santander has a three-year fix rate priced around 3.8%. Ten-year fixes are priced around 4.5%. Nationwide has also just announced it is cutting its prices and improving most of its rates.
"There has been a lot going on in the mortgage market over the last few weeks with multiple banks and building societies consistently lowering their rates in the run-up to Christmas and the Budget at the end of this month."
How much would NatWest's 3.71% fixed mortgage cost?
Representative example: A capital and interest NatWest mortgage of £400,000 payable over 30 years, initially on a fixed rate basis 3.71% until 31/01/2028 and then on the lender's 6.99% standard variable rate for the remaining 27 years. The 3.71% rate would require 25 monthly repayments of £1,847.98 followed by 335 payments of £2,617.92. The total amount repayable would be £923,232.70made up of the loan amount, plus interest (£522,206.93) and £1,495 (product fee), £65 (final repayment charge), £30 (completion fee). The overall cost for comparison is 6.6% APRC representative.
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