NatWest has recently made significant adjustments to its mortgage rates, particularly focusing on buy-to-let (BTL) properties, as well as its offerings for new and current borrowers.
1. Key Changes for Landlords
For those considering investing in property for rental purposes, the most exciting announcement is the cut in landlord stress rates. This essentially determines how much rental income landlords need to prove they can receive in order to secure a mortgage, providing some breathing room for potential property moguls.
2. A Closer Look at Rate Adjustments
For anyone considering taking out a mortgage or refinancing, here are the specifics:
- BTL two-year fixes: These have been reduced from 8.15% to a more attractive 7.81%.
- BTL five-year fixes: A slight reduction here, moving from 6.78% to 6.68%.
- Like-for-like remortgages: For those considering refinancing, rates have fallen from 7.55% to 7.15%.
Rate Reductions for New Borrowers
New customers have plenty to smile about with these enticing offers:
- House Purchase: Rate cuts of up to 26bps and 27bps on selected two- and five-year deals.
- First-Time Buyers: For those entering the property ladder, enjoy cuts of up to 22bps and 15bps on selected deals.
- BTL Purchase: Investors can access rate cuts of up to 37bps and 22bps.
- BTL Remortgage: For refinancing landlords, cuts of up to 23bps and 40bps are available.
Existing Customer Specials
Loyalty seems to pay off, with NatWest offering the following for their current clientele:
- Standard Switcher Rates: Cuts of up to 17bps and 20bps on select deals.
- BTL Switchers: Enhanced cuts of up to 31bps and 33bps on chosen deals.
- Special Mention: The introduction of 100% loan-to-value two-year loans for existing customers looking to switch mortgages.
Expert Insight: The Bigger Picture
Nicholas Mendes, the mortgage technical manager at John Charcol, shared some insights. He noted that NatWest’s swift move followed similar actions by Halifax and HSBC. With the market now appearing stable and lenders seemingly confident in maintaining the current monetary policy, we might see even further competitive rates on the horizon. Mendes predicts that we might see rates dropping to as low as 4.6% and potentially even 4.5% on a five-year fix sooner than most expect.