NatWest launches lowest mortgage rate on the market at 3.97%

NatWest has launched a sub-4% mortgage rate, undercutting Nationwide with the new lowest rate in the market.

NatWest’s 3.97% five-year fixed rate is available for home movers at 60% LTV with a £1,495 fee.

The previous cheapest rate on the market was Nationwide’s five-year fixed rate at 3.99%, launched two weeks ago.

Nationwide’s product is also available to new customers moving the home and comes with a £1,499 fee.

A host of lenders have reduced mortgage rates after the Bank of England cut interest rates to 5% last Thursday, the first reduction since 2020.