Natwest and RBS announce fixed rate mortgage cut

Mortgage lenders Natwest and RBS announced today that they would be reducing the rate of their fixed rate mortgages by as much as 0.6 per cent.

In further good news for borrowers, the two banks said that fixed rate mortgages would be cut by a minimum of 0.35 per cent, while selected arrangement fees would be lowered by £500.

Andy Fell, director of branch mortgages at NatWest, said that the bank was continuing to grow in the mortgage market, with lending to new customers up 28 per cent year on year.

"We remain committed to making lending available to ensure we support our customers during these challenging economic conditions," he said.

The lower fixed rate mortgages will be targeted at first time buyers and customers looking to remortgage. New borrowers will have the choice of two or five year fixed rates with loan-to-values ranging from 75 to 95 per cent.

The news comes after calls from Which?, Europe's largest consumer group, which said that banks should reduce standard variable mortgage rates when base rates are cut.

Mortgages News posted on 22/10/2008 14:56:16