Homebuyers and those looking to remortgage could bag a bargain thanks to NatWest slashing mortgage rates.

The bank is battling to offer customers the lowest rates on the market, and from tomorrow (13th August), new customers will be able to get a five-year fixed rate mortgage at just 4.68%

This market-leading rate requires a 10% deposit and comes with a £995 fee. It beats the next best rate on the market, from Virgin Money, by a considerable margin. Virgin Money currently offers a five-year fix at 4.76% with a £909 fee.

For those buying a £250,000 home with a 10% deposit on a 30-year mortgage term, the monthly payments would be £1,164 with NatWest and £1,175 with Virgin Money.

Other NatWest deals launching tomorrow include:

• Two-year fix at 4.44% for those buying a home with a 25% deposit. This comes with a £1,495 fee.
• Two-year fix at 4.34% for those remortgaging with 40% equity. This comes with a £1,495 fee. There’s also a two-year fix available at 3.9% with a £995 fee.

Why are rates falling?

The Bank of England recently reduced the base rate, which has filtered down to mortgage rates. Although this was expected by lenders, it’s good news for borrowers as the cost of mortgages is falling.

Other lenders cutting rates:

NatWest isn’t alone in trying to attract new customers with lower mortgage rates. Santander is also reducing rates on some of its products by as much as 0.19 percentage points. Leeds Building Society is also making cuts of up to 0.3%.

Ranald Mitchell, director at Charwin Mortgages, said: “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.”