Natwest & RBS cuts rates on new fixed and tracker mortgages

With mortgage rates continuing to rise across the industry, RBS today announces that from Wednesday, 30th April, it is to cut rates by up to 0.30% - with the prices of all new fixed and tracker mortgages lowered by at least 0.10%. These deals are available through RBS and NatWest branches.

Announcing the move, Paul Geddes, CEO, Consumer Banking, said "Whilst 2008 has seen a shrinking mortgage market, we have actually increased the amount we have lent by 18% and plan to continue this trend for the rest of the year. Today we are launching two initiatives to build on this - one to help borrowers looking for a new mortgage and the other for those saving for the deposit on their first home. In these uncertain times, we are giving practical support by providing lower rates on all our new fixed and tracker mortgages. At the same time we are offering a savings product that delivers a generous tax-free reward for saving towards a deposit on a first home."

At the same time, RBS will be doing all it can to help borrowers saving for the deposit on their first home. The First Home Saver Account offers an attractive haven for savings and a generous tax-free cashback of up to £5,000 upon completion of a RBS mortgage (worth the equivalent of £8,333 for a higher rate tax payer).

The Account can be opened with just £100 and asks customers to make at least one regular monthly payment, minimum £50, to the account by standing order. Of course, customers can make additional deposits as often as they wish. Savers can earn up to 3.75% gross/AER, as well as a tax-free cashback bonus of up to £5,000 upon completion of their RBS mortgage.

To qualify for the tax-free cashback, savers just need to have the First Home Saver Account open and to have maintained the minimum balance applicable to one of the qualifying tiers for the six months prior to drawing their mortgage down.