NatWest has slashed rates on its buy-to-let (BTL) range by up to 1.56 percentage points and cut product fees by up to £1,000.
The lender’s five-year fixed rate BTL purchase mortgage at 70 per cent loan-to-value (LTV) has undergone the biggest reduction and is now available at 3.08 per cent without a product fee.
Two-year BTL fixes for purchase are now available at 2.68 per cent up to 70 per cent LTV and 2.77 per cent up to 75 per cent LTV, both without a fee.
Other five-year fixes are available without a fee at 2.98 per cent up to 60 per cent LTV and 3.25 per cent to 75 per cent LTV.
In total, nine of the lender’s BTL deals have seen product fees cut from £1,995 to £995.
Mark Bullard, head of sales at NatWest, said: “Having declared our intent to continue to fully support the buy-to-let sector under the new PRA requirements, it’s timely that we are able to announce such significant cuts to both our rates and product fees on so many of our buy-to-let deals.
“We want to remain competitive in this sector and will continue to work with intermediary firms on developing our buy-to-let proposition which we will look to improve in the autumn.”
Meanwhile the two year fixed-rate residential purchase mortgage at 95 per cent LTV has been cut from 4.33 per cent to 3.95 per cent, and the five-year fix at the same LTV has been reduced from 4.81 per cent to 4.45 per cent.
Both residential mortgages come without a product fee.
Martin Stewart, director at London Money, said: “It looks like a big move, but I am not entirely sure they are the most competitive in the marketplace.
“There are plenty below 2.68 per cent for a two-year fix. It goes to show how expensive they were before they cut them. The move is interesting, but I don’t think the results are that interesting.”
simon.allin@ft.com
