NatWest mortgages have this morning unveiled a series of rate reductions across their mortgage product offerings, set to take effect from the 12th of February 2025. The new changes are specifically for new business rates, existing customer deals, and additional borrowing (ADBO) options. As you can imagine, the mortgage industry has been waiting with baited breath for one of the big six UK mortgage lenders to start dropping their rates following the Bank of England’s base rate cut. NatWest has proved to be that trailblazer, providing substantial savings for various mortgage borrowers across the country! In this article, I will run through the changes that NatWest has announced.
New NatWest Mortgages Business Rates
The most significant of the rate changes are for NatWest new business products, which means that people looking to get a new mortgage with NatWest are going to be making some significant savings on their mortgages. Here is a breakdown of what has been announced so far:
- Purchase Rates: Selected 2-year and 5-year fixed deals will see decreases of up to 0.16%.
- Remortgage Rates: Customers looking to remortgage can benefit from rate reductions of up to 0.36%.
- High-Value Purchases: For high-value property acquisitions, rates will drop by up to 0.12%.
- High-Value Remortgages: High-value remortgage rates are set to decrease by up to 0.36%.
First-Time Buyer NatWest Mortgages
First-time buyer are certainly not being left out in NatWest’s latest rate adjustments! NatWest has announced that they will be extending support to first-time buyers with rate reductions of up to 0.10% on selected deals, easing the financial entry into homeownership for borrowers who would otherwise have been struggling to make higher mortgage payments per month.
NatWest Shared Equity Purchases
Those buyers using a shared equity scheme will benefit from rate decreases of up to 0.16%, facilitating more manageable financing options for those who do not want to or simply can’t afford to get a mortgage straight out for a property e.g. people in London where property prices are too high for them.
Help to Buy Shared Equity Remortgages
The Help To Buy shared equity scheme came to an end several years ago now after a successful 10 year run, however that now means that thousands of borrowers are needing to remortgage to get out of the scheme. NatWest rates for Help to Buy shared equity remortgages will be lowered by up to 0.13%, helping Help to Buy loan owners to clear their loan and secure more favourable terms on a new mortgage.
Green Mortgages
And finally, the last mortgages to be updated by NatWest are Green Mortgage loans. In alignment with sustainable initiatives promoted by many lenders across the UK, NatWest is reducing rates for green purchases by up to 0.12% and green remortgages by up to 0.36%, encouraging environmentally conscious homeownership and moving toward more sustainable business practices.
Speak To A Mortgage Advisor
These mass rate reductions across NatWest mortgages are a really positive sign since the Bank of England dropped the base rate last week to 4.5%. To me, this shows that lenders are regaining some sort of confidence in the markets, and I expect to see a few more of the big lenders following in suit. If you or anyone you know is looking for a new mortgage in 2025, please feel free to get in touch with our team of mortgage advisors today. We are here to help.
