NatWest cuts remortgage rates… but hikes interest for movers and first-time buyers

NatWest is the latest bank to announce mortgage rate cuts for homeowners remortgaging.

The re-pricing follows on from HSBC, TSB and Barclays who all reduced mortgage rates yesterday. 

From tomorrow, NatWest is cutting rates on deals aimed at people remortgaging by up to 0.16 percentage points.

However, first-time buyers and home movers fixing for two or five years could see rates increase by up to 0.15 percentage points. 

Yesterday, HSBC made the biggest splash in the mortgage market after it reduced rates across all its product ranges, with reductions of up to 0.24 percentage points for first-time buyers, home movers and landlords.

Its cheapest product is now a five-year fix at 3.84 per cent aimed at home movers purchasing with at least a 40 per cent deposit. 

On a £200,000 mortgage being 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 £1,495 fee. 

HSBC’s three-year fix aimed at home buyers purchasing with a 40 per cent deposit is also a best buy, charging 4.14 per cent with a £649 fee attached.

It is also offers a market-leading three-year fix 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 reduction appears to be a swift reaction to HSBC’s repricing today.

‘Currently, NatWest’s rate at 3.83 per cent with a £1,495 fee places them in direct competition with Barclays and HSBC among the top deals.

‘However, HSBC’s current offer stands out with a 3.84 per cent rate and a lower £999 fee, which could be more appealing to borrowers despite the slightly higher rate compared to NatWest’s 3.83 per cent with a £1,495 fee. 

‘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 if this latest move by NatWest is intended to align the broker offering with the deals available directly to borrowers through NatWest.’