NatWest Bank has become the latest lender to offer a new low rate on its mortgages as the UK price war continues.
A number of banks have already dropped their prices, with NatWest offering a five-year fixed rate mortgage at 2.95 per cent.
Akin with similar offers, it is aimed at “secure” lenders, with a minimum 40 per cent deposit or equity in the home required.
Commenting on the rate, Ray Boulger of mortgage adviser John Charcol said the deal offered fantastic value for mortgages of at least £100,000.
He added: “NatWest is adopting a similar marketing strategy to the only other lenders with a sub 3 per cent five-year fix – HSBC and Santander. All are offering a headline grabbing rate up to 60% LTV, coupled with a big fee, but a massive increase in the rate for the next LTV band, albeit with a much smaller free.
“With three major lenders competing so aggressively for the up to 60 per cent LTV market other lenders are likely to see an impact on application levels. For those who don’t want to play this game an obvious alternative is to offer slightly higher rates at better LTVs.”
