NatWest Group PLC (LSE:NWG) has become the latest lender to cut some mortgage rates to below 4% after the Bank of England reduced base interest earlier this month.
This follows similar moves at the likes of Banco Santander (LSE:BNC), Lloyds Banking Group PLC (LSE:LLOY)’s Halifax and HSBC Holdings PLC (LSE:HSBA) as competition heats up between lenders.
NatWest will offer 3.89% on a 60% loan-to-value five-year fix from Tuesday following the move, against 4.03% for the same deal previously.
Rates across its other range of mortgage deals are also set to be lowered, with a two-year fixed 60% loan-to-value remortgage being offered at 4.05%.
“The good news just keeps coming on the mortgage front,” PFG Mortgages managing director Tony Castle said.
“Rates falling below 4% and continuing to decrease is a huge and much-needed relief to not only homeowners but also aspiring buyers.
“The feel-good factor seems to be back. Clearly, this week’s inflation data will be closely monitored by lenders and could determine what happens to rates in the weeks ahead.”