NatWest offers sub-4% mortgage deal directly to consumers with brokers concerned
High street lender NatWest is offering a sub-4% mortgage deal directly to consumers, which has raised concerns among brokers.
The minimum loan is £250,000, with early repayment charges (ERCs) starting at 4.5% in the first year, falling to 4.25%, then to 4%, 2.5% and finally 1%.
The deal is one of the cheapest on the market, following Nationwide bringing out a five-year fixed rate at 3.99% at the end of July.
The lowest five-year fixed rate at 60% LTV available to intermediaries with a £1,495 fee is 4.03%.
Nicholas Mendes, mortgage technical manager and head of marketing at NatWest, said: “It’s disappointing to see a lender offer a product exclusively for direct clients, especially given the significant volume of business that flows through intermediaries.
“This approach seems short-sighted and overlooks the value and trust intermediaries bring to the lending process. It’s crucial to ensure fair and equal opportunities for all clients, regardless of their approach.”
Sources said that lenders’ pricing was subject to regular review and revision to offer best value to customers and accounted for several factors such as cost to serve, service levels and market competitiveness.
They said that this would mean different prices are available to different customers on different channels, but brokers were still a key avenue for lenders and had leading rates.
A NatWest spokesperson said: “We keep our products under continual review in line with market conditions.”
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
