NatWest has become the latest lender to announce reductions in mortgage rates, cutting selected products by up to 0.21%. This move follows Santander's similar announcement on Friday, signaling a trend among major banks to lower borrowing costs.
NatWest Rate Reductions
NatWest is reducing rates across its mortgage range, with the most significant cuts applied to two-year fixed-rate products. For example, a two-year fixed-rate purchase mortgage at 80% loan-to-value (LTV) will see a decrease of 0.21%, dropping from 4.95% to 4.74%. Similarly, a two-year fixed-rate purchase mortgage at 75% LTV will be reduced by 0.2%, from 4.89% to 4.69%. First-time buyers can benefit from a two-year fixed rate at 85% LTV, which is decreasing by 0.19% from 4.98% to 4.79%, and includes £250 cashback. All three products carry a fee of £995.
Santander's Rate Adjustments
Santander, meanwhile, is cutting rates on various mortgage products. New business first-time buyer 10-year fixed rates and selected home mover fixed rates (including new build and large loans) are being reduced by up to 0.15%. Selected remortgage rates, including large loans, are being cut by up to 0.19%. Buy-to-let purchase and remortgage fixed rates are also being reduced by up to 0.23%. However, a first-time buyer 85% LTV two-year fixed rate with a £999 fee will increase by 0.05%. The lender's My First Mortgage fixed rate remains unchanged.
Tracker Rate Changes
Santander is also reducing two-year tracker rates for first-time buyers and home movers (including new build) by up to 0.5%, and two-year tracker rates for home mover and remortgage large loans by up to 0.4%. For product transfers, selected residential two-, three-, and five-year fixed rates will decrease by up to 0.15%, while all buy-to-let two- and five-year fixed rates are being cut by up to 0.23%.
Expert Commentary
Riz Malik, an independent financial adviser at R3 Wealth in Southend-on-Sea, commented to Newspage: "As we move towards the end of the first half of 2026, lenders are keen to bolster their mortgage books and take on more new business after a muted couple of months due to the war in the Middle East. They are still conscious of the global economic backdrop but are also keen to do their best to get business on their books. Reductions in tracker rates will be especially welcomed by those not seeking to fix."
