RBS and NatWest mortgage rates cut

Date:Thursday 23rd October 2008

RBS and NatWest mortgage rates are being slashed, the lenders have announced.

The reductions on fixed-rate mortgages also come with lower fees and are available for new customers who are first-time buyers, or who are remortgaging.

Borrowers have the choice of two or five-year fixed-rate deals for loans-to-value (LTV) of 75 per cent, 90 per cent and 95 per cent.

Fees on the mortgages are also being reduced.

For new purchase deals, a two-year fixed-rate option on a LTV of 90 per cent will be cut by 0.5 per cent to 6.14 per cent.

A two-year fixed-rate option for a remortgage of 90 per cent LTV is being cut by 0.6 per cent to 6.14 per cent.

Consumer group Which? has called on banks to cut standard variable mortgage rates when base rates are reduced, the BBC reports.

A survey by Moneyfacts found that banks such as Northern Rock had not let UK lenders experience the benefit of the 0.5 per cent slash in the base rate.