NatWest and Halifax strike up the summer rate war with sweeping cuts

The summer rate war has kicked up a notch after two of the biggest lenders in the market announced sweeping cuts last week.

NatWest Intermediary Solutions announced cuts of up to 0.64 per cent while Halifax cut rates by up to 0.2 per cent for new customers and 0.3 per cent for those remortgaging.

Barclays, Accord MortgagesLeeds Building SocietyVirgin Money and Nationwide have all reduced rates across their ranges since the end of July.

Trinity Financial product and communications manager Aaron Strutt says lenders are reassessing their product rates as they seek to hit end-of-year lending targets following an increase in rates earlier this year.

He says: “Many of the lenders increased their rates earlier in the year and they obviously think this is a good time to lower them again, particularly with so many borrowers sitting on standard variable rates. Lenders will also be looking at end of year targets and this may be a final bid to hit those in the final quarter.

“It’s good to see there is so much competition in the market and the lenders are fighting so hard to attract new customers.”