Natwest is to cut rates on its core and semi-exclusive ranges of residential and buy-to-let purchase mortgages and remortgages.
Tomorrow (14 December), the lender will lower rates by up to 0.2 percentage points for 90 per cent and 95 per cent loan-to-value two-year fixed rate core residential purchase deals, as well as cutting five-year fixes at 70 per cent and 95 per cent LTV by 0.03 and 0.1 percentage points respectively.
Rates on the semi-exclusive first-time buyer-only products are being reduced by up to 0.18 percentage points, while cashback has been cut from £750 to £500 on two deals.
The two-year semi-exclusive fix at 90 per cent LTV is being cut by 0.25 percentage points, while five-year products are being cut by up to 0.25 percentage points and a buy-to-let purchase deal is being added at 60 per cent loan-to-value.
Natwest is launching the residential and buy-to-let product transfer range to coincide with the roll-out of procuration fees tomorrow.
However, the lender has also announced a number of small rate increases, including a 0.1 percentage point increase on all two-year fixed rate remortgages in its core range.
Rates on selected two-year fixed rate buy-to-let remortgages are also being increased by 0.1 percentage points, while several semi-exclusive products are also undergoing rate increases.
Mark Bullard, head of sales at Natwest, said: "Having reviewed our portfolio we have made a few adjustments to rates to reflect the current market conditions and balance our mix of business.
"I am delighted that we have added to our already extensive range of intermediary mortgages with the introduction of our product transfer mortgages enabling brokers to help current Natwest mortgage holders to switch to a new Natwest deal."
Daniel Bailey, principal at Derbyshire-based Middleton Finance, said: "The positive news is for first-time buyers with smaller deposits.
"The fact that they have cut rates at 90 and 95 per cent LTV is good news for first-time buyers who don't have a big deposit.
"It is interesting that they are increasing rates on remortgages. It could be because there is a lot of demand at the moment and they are looking to make more money on remortgages."
simon.allin@ft.com
