The mortgage rate cut wars of last summer may have returned, judging by the movements from major lenders this week.
This time, it is the turn of NatWest and TSB to make further rate cuts.
They form a duo of lenders that are hoping to secure borrowers’ finances ahead of a widely expected base rate cut in August.
It marks the second time in a matter of days that TSB has slashed its mortgage rates, in the week where inflation held at 2% for the second consecutive month.
However, following the inflation announcement, a base rate cut in August now “hangs in the balance”, according to Myron Jobson from Interactive Investor.
YourMoney.com has assessed the latest rates lowered by two major lenders.
NatWest has lowered select new business rates by up to 0.23%, including first-time buyer (FTB), shared equity and buy-to-let (BTL) deals.
The lender’s new business residential rates, including purchase and remortgage, have gone down by up to 0.23%. This includes its no-fee five-year fixed purchase rate at 60% loan to value (LTV), which has gone down by 0.23% to 4.28%.
In its FTB range, new business rates have decreased by up to 0.14%, which has hit its two-year fixed rate at 85% LTV with a £995 fee and £250 cashback. That is now priced at 4.94%.
New business rates on its shared equity range have dipped by 0.23%. So, its five-year fixed rate purchase deal at 60% LTV with no fee has decreased to 4.43%.
On the Help to Buy shared equity side, rates have decreased by up to 0.12%. The lender’s fee-free five-year fixed rate remortgage with £500 cashback has gone down by 0.12% to 4.6%.
NatWest’s BTL five-year fixed remortgage rate at 60% LTV has fallen by 0.16% to 4.5%. The product comes with a £3,499 fee.
TSB continues the summer rate-cutting party
Meanwhile, TSB dropped rates across its residential, BTL, product transfer and additional borrowing ranges.
On the residential side, that was by up to 0.2% on some deals, including the five-year fixed remortgage product. This means a five-year fix with no fee at 60% LTV is 4.64% and the equivalent product for 90% LTV is now 5.44%.
Homemovers also saw rates fall up to 0.15% on some deals, leaving a three-year fix with a £1,495 fee to pay and 75% LTV to stand at 4.88%.
The cuts applied to its BTL range for house purchases were up to 0.1% across the board. To finance 60% of your property without a fee, a deal is available for 5.39%, whereas a £1,995 fee equivalent is priced at 4.69%.
Its product transfer range was reduced by up to 0.15% for three-year fixes and slightly less (0.1%) for two-year equivalents.
Therefore, a three-year fix for 75% LTV with no fee is on offer at 5.09%, but if you want to finance more of your home, it is available at 5.69% at 85% LTV.
Homeowners can enjoy cuts of up to 0.15% across its residential additional borrowing range. This has left a three-year fix between 60% and 75% to stand at 5.09%.
A five-year equivalent on the same terms is now 4.79%.
The BTL options also dropped by up to 0.15% on two- and five-year options. If you want a two-year deal up to 60% LTV, that is available for 5.39%, and the five-year choice is 4.89%.
