RBS and NatWest launch 5.74% two-year fix

RBS and its subsidiary, NatWest, have launched a new two-year fixed-rate home loan.

Borrowers with a minimum 15% deposit can benefit from a rate of 5.74% and a reduced fee of £499.

The rate on the new deal is up to 0.45% below those on similar products offered by the lenders, while the fee is down from £999.

The new fix is available to home movers, remortgagers (who will have legal and valuation fees paid) and existing RBS and NatWest customers looking to switch deals.

Applications can be made by phone or at RBS and NatWest branches.

Meanwhile, the UK’s largest building society, Nationwide, is reducing its standard variable rate (SVR) by 0.3%, in response to the emergency 0.5% cut in the Bank of England’s base rate, last week.

The change will be effective from 1st November, at which point the lender says its SVR will be a highly competitive 6.19%.

So far, First Direct, Lloyds TSB, RBS and Britannia Building Society are the leading names to have responded to the base rate cut with a full 0.5% reduction in SVR.

Homeowners with base rate trackers will automatically benefit from the 0.5% cut regardless and most should see repayments reduced from next month.

Discuss this in the Finance Markets forums

Story link: RBS and NatWest launch 5.74% two-year fix