NatWest mortgage rates reduced as property transactions increase
From the 2nd of July 2024, NatWest is implementing a series of rate reductions across its mortgage product range, providing potential savings for both new and existing customers. This strategic move comes as the UK property market experiences a notable upswing, with property sales increasing for the fifth month in a row. In this article we will explore the new NatWest mortgage rates and also the data surrounding property transactions.
NatWest Mortgage Rates Reductions Overview
NatWest’s rate adjustments span a variety of mortgage products, including purchases, remortgages, high-value transactions, first-time buyer deals, shared equity schemes, Help to Buy remortgages, and Buy to Let options. Key changes include:
New Customer Mortgage Rate Changes:
- Purchase: Decreases of up to 0.23% on selected 2-year deals and 0.12% on selected 5-year deals.
- Remortgage: Decreases of up to 0.13% on selected 2-year deals and 0.08% on selected 5-year deals.
- High Value Purchase: Decreases of up to 0.10% on selected 2-year deals and 0.06% on selected 5-year deals.
- High Value Remortgage: Decreases of up to 0.13% on selected 2-year deals and 0.08% on selected 5-year deals.
- First-Time Buyer: Decreases of up to 0.05% on selected 2-year deals and 0.06% on selected 5-year deals.
- Shared Equity Purchase: Decreases of up to 0.08% on selected 2-year deals and 0.12% on selected 5-year deals.
- Help to Buy Shared Equity Remortgage: Decreases of up to 0.06% on selected 2-year and 5-year deals.
- Buy to Let Purchase: Decreases of up to 0.03% on selected 2-year deals and 0.07% on selected 5-year deals.
- Buy to Let Remortgage: Decreases of up to 0.18% on selected 2-year deals and 0.14% on selected 5-year deals.
- Green Purchase: Decreases of up to 0.06% on selected 2-year and 5-year deals.
- Green Remortgage: Decreases of up to 0.06% on selected 2-year deals and 0.08% on selected 5-year deals.
- Buy to Let Green Purchase: Decreases of up to 0.03% on selected 2-year deals and 0.07% on selected 5-year deals.
- Buy to Let Green Remortgage: Decreases of up to 0.18% on selected 2-year deals and 0.14% on selected 5-year deals.
Market Response
These rate reductions come at a time of robust activity in the UK housing market. According to HMRC data, the number of UK residential transactions in May surged by 17% year-over-year to 91,290, marking a 2% increase from the previous month. This trend signifies the fifth consecutive month of growth in seasonally adjusted home sales, highlighting industry optimism for a strong start to the year.
Despite the Bank of England’s base rate holding steady at a 16-year high of 5.25% since August last year, the property market remains buoyant. The central bank last cut rates in March 2020, and while money markets had anticipated a potential rate cut in the spring of this year, many economists now forecast the first reduction to occur in November.
Seeking Expert Advice
Given the dynamic nature of the mortgage market and the myriad options available, it is crucial for potential homebuyers and those looking to remortgage to consult with a qualified mortgage advisor. Advisors with access to the entire market can provide tailored advice, ensuring customers secure the most competitive mortgage products and rates available. Call or message our team of mortgage experts today to see how we can help.
