TL;DR
- •NatWest has announced a significant reduction in its mortgage rates by up to 37 basis points, leading to potential savings for both residential and buy-to-let borrowers..
- •This move, which includes a substantial cut to a fee-free five-year fixed rate for residential house purchase at 95% loan-to-value (LTV), could lead to considerable savings for borrowers.
- •On a £200,000 repayment mortgage at 95% LTV, this rate cut reduces monthly payments from £1,228 to £1,186 — a saving of £42 per month or £504 per year.
As of 20th April 2026, NatWest has announced a significant reduction in its mortgage rates by up to 37 basis points across both residential and buy-to-let products. This move, which includes a substantial cut to a fee-free five-year fixed rate for residential house purchase at 95% loan-to-value (LTV), could lead to considerable savings for borrowers.
Impact on Residential Borrowers
First-Time Buyers
For first-time buyers, the biggest reduction is on a fee-free five-year fixed rate for residential house purchase at 95% LTV, which is falling by 37bps from 5.76% to 5.39%. On a £200,000 repayment mortgage at 95% LTV, this rate cut reduces monthly payments from £1,228 to £1,186 — a saving of £42 per month or £504 per year. This considerable saving could help first-time buyers manage their monthly budget more effectively.
First-Time Buyers at 90% LTV
First-time buyers with a lower LTV of 90% will also see significant savings. Assuming the same rate reduction of 37bps, on a £200,000 repayment mortgage, the monthly payment would decrease from £1,122 to £1,083. This represents a monthly saving of £39, or £468 over the course of a year.
Remortgagers
Remortgagers will also benefit as NatWest is reducing its two-year fix from 4.75% to 4.65%, undercutting Nationwide’s current best-buy deal of 4.66%. For a remortgager with a £250,000 mortgage at 75% LTV, this rate cut reduces monthly payments from £1,432 to £1,389 — a saving of £43 per month or £516 per year. This reduction could make remortgaging a more attractive option for those looking to reduce their monthly outgoings.
Impact on Buy-to-Let Borrowers
Landlords
A landlord with a £200,000 interest-only buy-to-let mortgage at 75% LTV will see their monthly cost drop from £917 to £875, a significant saving of £42 per month or £504 per year. This reduction could improve rental yields and overall profitability, making it a favourable time for landlords to consider expanding their portfolio.
Product Transfers
Landlords looking to transfer their product will also see benefits as the rate cuts cover product transfers as well. The exact savings will depend on the specific product and LTV ratio, but the rate reduction could make product transfer an attractive option for landlords seeking to optimise their mortgage costs.
Market Context
The rate cuts at NatWest are significant when compared to the market a year ago when the average fixed rate was higher. This reduction also comes at a time when the Bank of England base rate stands at 3.75%, indicating a favourable borrowing environment for consumers. In fact, the base rate has remained stable for the past 12 months, providing a level of certainty for borrowers amidst the ongoing geopolitical tensions in the Middle East.
Frequently Asked Questions
How much can I save with the new NatWest rates?
The exact savings depend on your mortgage amount and LTV. For example, a first-time buyer with a £200,000 mortgage at 95% LTV can save £42 per month.
Are the rate cuts applicable to buy-to-let mortgages?
Yes, the rate cuts apply to both residential and buy-to-let mortgages, including product transfers for landlords.
How does the NatWest rate compare to other lenders?
With the rate cut, NatWest’s two-year fix is now lower than Nationwide’s current best-buy deal of 4.66%.
What is the current Bank of England base rate?
The current Bank of England base rate is 3.75% as of April 2026.
About David Sampson
David Sampson writes about the UK mortgage market for Mortgage118, covering specialist lending, market trends, and practical advice for borrowers. All content is reviewed for accuracy against FCA guidelines and current market data.