Santander and NatWest customers are set to benefit from mortgage rate reductions this week, as lenders engage in aggressive competition to attract new business. Following Santander's announcement on Friday, NatWest has revealed cuts of up to 0.21% across its range, with two-year fixed rates seeing the most significant reductions.
NatWest Rate Cuts
NatWest is reducing rates on several products. A two-year fixed rate purchase mortgage at 80% loan-to-value (LTV) will drop by 0.21%, from 4.95% to 4.74%. Similarly, the two-year fixed rate at 75% LTV falls by 0.2% to 4.69%, while the two-year First Time Buyer fixed rate at 85% LTV decreases by 0.19% to 4.79%, with £250 cashback. All three products carry a £995 fee.
Santander Adjustments
Santander is cutting new business first-time buyer (FTB) 10-year fixed rates and selected home mover fixed rates by up to 0.15%. Remortgage rates, including large loans, are reduced by up to 0.19%. Buy-to-let purchase and remortgage fixed rates are cut by up to 0.23%, though an FTB 85% LTV two-year fixed rate with a £999 fee increases by 0.05%. The My First Mortgage fixed rate remains unchanged.
Tracker rates are also being slashed: two-year trackers for FTBs and home movers drop by up to 0.5%, and by up to 0.4% for home mover and remortgage large loans. Product transfer rates on selected residential fixed terms are trimmed by up to 0.15%, and buy-to-let fixed rates by up to 0.23%.
Broker Reactions
Riz Malik, Independent Financial Adviser at R3 Wealth, noted that lenders are competing fiercely. "As we move towards the end of the first half of 2026, lenders are keen to bolster their mortgage books after a muted couple of months due to the war in the Middle East. Reductions in tracker rates will be especially welcomed by those not seeking to fix."
Ken James of Contractor Mortgage Services cautioned that the cuts may not kickstart the market. "Lenders are fighting for volume in a sluggish market and are willing to take a margin hit today to keep pipelines alive tomorrow. However, this is a pricing strategy rather than a market turning point."
Richard Davidson of onlinemortgageadvisor.co.uk was more optimistic: "This is a strong move from Santander and an indication that other lenders should follow. With NatWest, that seems to be the case." Katy Eatenton of Lifetime Wealth Management added, "If mortgage rates continue to fall, confidence will start to return."
Aaron Strutt of Trinity Financial observed that swap rates have come down again, despite earlier expectations of rises. "There is a lot of economic uncertainty, but lots of people still want to get on the property ladder. We are speaking to more renters trying to purchase their rented homes using concessionary purchase mortgages."
Justin Moy of EHF Mortgages welcomed the reductions, saying, "It's good to see Santander bringing its rates into line with recent changes on the High Street. With almost every type of borrower benefiting, this will have a positive impact." Babek Ismayil of OneDome noted that while mortgage conditions remain challenging, property market conditions are favourable for buyers to negotiate hard on price.
