NatWest has cut rates on its residential mortgages with some products reduced by as much as 2.5 percentage points.

The largest reductions include its five-year fixed remortgage deal at 60 per cent loan to value (LTV) which now has a rate of 1.88 per cent down from 4.44 per cent.

The alternative option at 75 per cent LTV has also seen a significant cut from 4.63 per cent to 2.23 per cent.

Both products have no fee and £500 cashback.

For purchasing customers, significant reductions have been made to two-year fixes and five-year fixes have gone down by over one percentage point.

First-time buyer offerings at 80 per cent LTV have also been decreased, the two-year fixed mortgage has been reduced to 2.53 per cent while the five-year alternative at the same tier is 2.73 per cent down from 3.38 per cent.

For borrowers purchasing through shared ownership or the Help to Buy scheme, two-year fixes have been reduced by 0.63 per cent and five-year fixes are down by 1.3 per cent. Rates now vary from 1.48 per cent at 60 per cent LTV to 2.2 per cent at 75 per cent LTV.

Mark Bullard, head of sales at NatWest, said: “I’m delighted that we are making reductions across a wide selection of LTV bandings that support numerous customer types; from first-time buyers, to those looking to purchase or for shared equity mortgages.”