NatWest reports £1.1bn profit as it predicts 7% fall in UK house prices

Bank says there has been a slowdown in customers trying to get new mortgages in recent weeks

Pre-tax profits at NatWest Group remained flat between July and September at 1.1bn, amid a worsening economic outlook and a cost of living squeeze on its customers, as the bank predicted UK house prices would fall by 7% next year.

Its profits, boosted by higher interest rates increasing its margin between what it charged for loans and paid out to savers, were slightly higher than the 1bn made in the same period a year earlier but lower than analysts' forecasts.