Mortgage rate cuts: NatWest launches best buys for new customers from tomorrow
- New rates include best buy for first-time buyers with a 10% deposit
- There is also a top remortgage rate for switchers with 40% equity
- Check the top deal for your situation with our mortgage calculator tool
Banks and building societies have announced a fresh round of mortgage rate reductions, including a new best buy for first-time buyers.
NatWest is set to reduce many of its rates from tomorrow, and will be offering a market-beating 4.68 per cent rate fixed for five years to new customers who are buying a home with a 10 per cent deposit.
It comes with a £995 fee and is substantially lower than the competition. The next-best rate will be Virgin Money's 4.76 per cent rate with a £909 fee.
![Hot competition: NatWest is the latest mortgage lender to offer best-buy rates](https://i.dailymail.co.uk/1s/2024/08/12/13/88438903-13735285-image-m-2_1723464505608.jpg)
Hot competition: NatWest is the latest mortgage lender to offer best-buy rates
Someone buying a £250,000 home and repaying the mortgage over 30 years would pay £1,164 per month with NatWest's deal, compared to £1,175 with Virgin.
NatWest will also launch a best-buy two-year fix for those buying a home with a 25 per cent deposit, at 4.44 per cent with a £1,495 fee. This narrowly undercuts Barclays' 4.45 per cent rate, though the fee is smaller at £899.
For new customers remortgaging with 40 per cent equity or more, it will offer a best-buy two-year fix at 4.34 per cent with a £1,495 fee, or at 3.9 per cent with a £995 fee.
The current best-buy is Barclays' 4.4 per cent rate with a fee of £948.
NatWest is reducing rates by up to 0.20 percentage points on a variety of deals for new customers to the bank, including those buying homes and remortgaging away from their current lender.
Its lowest headline rate on offer is now a five-year fix for those buying with a 40 per cent deposit, at 3.89 per cent on a five-year fixed deal.
While this is one of the cheapest deals on the market, Barclays has a cheaper deal at 3.84 per cent with a lower fee of £899.
The NatWest rate comes with a £1,495 fee and the equivalent fee-free mortgage has a rate of 4.09 per cent.
Most major lenders have reduced mortgage rates in recent weeks.
This is in part due to the Bank of England reducing the base rate from 5.25 per cent to 5 per cent at the start of August, though lenders had to some extent priced that move in in advance.
Santander is also set to reduce some of its purchase and remortgage fixed deals for new customers by between 0.02 and 0.19 percentage points tomorrow.
Product transfer rates for existing customers are also being reduced by between 0.01 and 0.27 per cent.
Leeds Building Society is also set to make rate cuts of up to 0.30 percentage points tonight.
Ranald Mitchell, director at Charwin Mortgages told the Newspage news agency: 'This latest move is yet another volley in the ongoing mortgage rate war among the UK's biggest banks, and it's music to the ears of consumers nationwide.
'As rates drop, it's an all-around win for anyone looking to secure a mortgage.
'It's clear that, in this competitive landscape, NatWest is keen to stay ahead of the pack, offering more affordable options for homeowners.'
SAVE MONEY, MAKE MONEY
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.