NatWest has “broken the mould” by making changes to its product pricing, according to Samuel Mather-Holgate, IFA at Mather and Murray Financial.
NatWest has announced a number of rate cuts across its new business product range.
The changes include decreasing rates on its purchase products by up to 14 and 12 basis points on selected 2 and 5 year deals respectively.
In addition, remortgage products will decrease by up to 15bps and 17bps on selected 2 and 5 year deals.
Mather-Holgate explained that, with an interest rate decision due on Thursday and the election just around the corner, “most lenders are holding firm on pricing until there is more certainty”, a trend which NatWest has gone against.
This was received positively by EHF Mortgages managing director, Justin Moy, who said: “Amid the political noise, this is a small but welcome rate cut from NatWest for new business.
“Applications have slowed across the industry in recent weeks so we could see a ripple of small changes in the next fortnight if inflation hits target or better this week.
“Small wins like this matter.”
R3 Mortgages director, Riz Malik, added: “Despite all the politico-economic turbulence, lenders are still willing to lend and NatWest, based on this evidence, wants their piece of the pie.
“With the base rate decision looming, all eyes are on the main mortgage lenders and what they will do regardless of whether we see the first rate cut since 2020 on Thursday.
“Even if no cut comes, a dovish set of minutes has the potential to set borrowers free.”
Additionally, Lodestone Mortgages and Protection director, Craig Fish, said: “This is a positive move from one of the Big Six.
“Brokers and borrowers alike will all be hoping that more will follow and, like the British summer, finally inject a bit of heat into a rather dull market.”
Meanwhile, Release Freedom broker and director, Simon Bridgland, praised the timing of NatWest’s decision, stating: “At last, a lender willing to lay their cards on the table before this Thursday’s base rate decision.
“Well done NatWest for being bold and drawing a line in the sand.”
tom.dunstan@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
