High-street bank trumps rivals with cheapest five-year mortgage

NatWest has launched the cheapest five-year fixed mortgage deal on the market. 

The 3.71% rate comes with a £1,495 product fee and is available to customers who have a 40% deposit. 

Other lenders have also announced cuts this week, including Barclays and Halifax. 

Yesterday, Barclays reduced its five-year fixed 60% LTV re-mortgage deal from 4.06% to 3.93%. 

It also announced cuts across its purchase product range, with a five-year fixed 75% LTV deal coming with a 3.95% rate and a £899 product fee. 

Halifax also launched a 3.81% five-year deal to new borrowers yesterday.

Brokers have welcomed the cuts as "hugely positive" news, and suggested more lenders could follow suit.

"NatWest's latest rate cut is another clear signal that mortgage lenders are pulling out all the stops to reignite the housing market," Ranald Mitchell, director of Charwin Mortgages, told the Sky News Newspage.

"This flurry of rate reductions is a positive step towards finding that sweet spot where consumer confidence rebounds, and the property market gets back on track.

"It's an exciting time for potential buyers, affordability is improving, and the window of opportunity is wide open." 

Justin Moy, the managing director at EHF Mortgages, said: "Lenders are looking to grab some market share by the end of the year.

"Other lenders will likely want to make a similar move over the coming days to remain competitive." 

Fantastic news for the local and UK housing market - this latest mortgage update is set to transform the housing market which is brilliant for home sellers, buyers and us as estate agents! 

Thinking of selling? Contact your local Beadnall Copley office for an up-to-date market appraisal on your home.
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