NatWest, Barclays, Santander, and Nationwide have all announced cuts
Two major UK banks announce rate cuts up to 4.69% after other lenders reduce(Image: inyourArea)
Both NatWest and Barclays have announced rate cuts, following similar announcements from Santander and Nationwide Building Society.
Barclays has reduced its 2-year residential purchase mortgage (£0 product fee) at 95% LTV from 4.92% to 4.60%.
Meanwhile, NatWest has reduced its zero product fee 2-year fixed rate purchase mortgage at 95% LTV by 0.12% from 4.81% to 4.69%.
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The lender’s 2-year fixed rate remortgage at 90% LTV, with a £995 product fee, will reduce by 0.8% from 4.60% to 4.52%.
It comes after Santander announced cuts of up to 0.32% at 85%, 90% and 95% LTV.
Before that, Nationwide made reductions of up to 0.16% up to 95% LTV.
Speaking to Newspage, Rohit Kohli, Director at Romsey-based The Mortgage Stop, explained why rates are coming down.
He said: “Two and five-year swap rates have been sliding, with the two-year swap close to its lowest point in the past couple of years.
“Markets are increasingly pricing in a base rate cut, helped by softer employment data and frankly pathetic growth figures.
“First-time buyers are far more active than they were 12 to 18 months ago. Demand is there and it’s strong.
“By trimming rates at 90% and 95% LTV, NatWest is backing borrowers with smaller deposits, not just those sitting on equity.”
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