RBS/NatWest mortgage rates reduced

Date:Monday 8th December 2008
Author: Max Freedman

NatWest and Royal Bank of Scotland (RBS) are cutting their standard variable rate.

According to an announcement made by the pair, their offset mortgage rate will be cut by 0.75 per cent, bringing it down to 4.2 per cent.

This will take effect from December 31st.

Existing customers with tracker mortgages will also see a one per cent reduction from January 1st 2009.

Meanwhile, two new first direct tracker mortgages have been launched.

Called the Life Tracker Mortgage and the Offset Base Rate Tracker Mortgage, the two products track the Bank of England base rate.

The former product is at 3.69 per cent presently with a £399 arrangement fee, while the latter is now at 3.49 per cent and carries a £599 fee.

Both are available for loans to value of up to 80 per cent.

In addition, first direct is also bringing the base rate cut to its standard variable rate from January 2nd.