Mortgage rates have started to fall following February's softer-than-expected inflation reading, with lenders highlighting their confidence that base interest rates will fall later this year.
NatWest Group PLC (LSE:NWG) said it would be cutting the rates on a number of its mortgage offers, with five-year deals on purchases seeing a drop of seven basis points.
Additionally, a limited selection of remortgage offers will drop by 24 basis points.
Yet, two-year tracker deals are set to rise 40 points, which has caught the attention of analysts.
Justin Moy, managing director at EHF Mortgages, said: "It's great to see an immediate response to the improved inflation figures this morning, with NatWest leading the way with improvements to many of their fixed-rate deals.
"This slams the brakes on rate increases for the moment. But the tracker rates increasing by up to 0.40%? Is that NatWest looking to grab more profit in readiness of some base rate cuts on the horizon?"