Natwest Mortgage - End of Fixed Rate Options

Affy9

Hi All,


I'm a FTB (July 2017) and currently a year into my two year fixed rate with Natwest.


I'm just trying to prepare for the eventualities of what may happen when the rate ends (I understand I can keep the current mortgage at the higher variable rate).



Does anyone know if Natwest will automatically offer me a new fixed rate deal or would I need to re-apply for a new mortgage to get one with them (again, I understand I would for an new provider).



Appreciate any help and sorry if this is a daft question.


Affy

ACG

They will usually get in touch around 3 months prior to the deal finishing. You can switch products, if no changes other than the product it should be simple enough.

Natwests retention deals are not particularly great and have not been all year so I suppose it depends on whether you want an easy life or a few extra quid in your pocket.

foxy-stoat

Interesting that a first timer is with Natwest.

Just go out to a couple of lenders or a broker nearer the end of the fixed rate and find out what retention rate they offer you.

Affy9

Thanks for the replies.


Foxystoat - Just curious about your comment re Natwest as a FTB? They were the only major lender to offer us a good rate anywhere in the ball park of what we wanted to offer - Nationwide were £50k short and Halifax (my bank) were £100k short!! Had no issues with them, and happy to stay but, ultimately, I don't want to pay through the nose so it's whether their retention deal is significantly better than taking the options back to market.



Cheers,


Affy

kingstreet

Childcare making a hole in affordability by any chance Affy?

Grezz24

foxy-stoat wrote: »

Interesting that a first timer is with Natwest.

Just go out to a couple of lenders or a broker nearer the end of the fixed rate and find out what retention rate they offer you.

Our broker suggest natwest for us too as a FTB which we went with. (no childcare affordability issues either)

He mentioned they were the best rate for us at 2.19 fixed for 5 years (HTB)

kingstreet

Grezz24 wrote: »

Our broker suggest natwest for us too as a FTB which we went with. (no childcare affordability issues either)

He mentioned they were the best rate for us at 2.19 fixed for 5 years (HTB)

It's a good rate. It isn't the best overall, although not knowing your circumstances it may have been the best for you.

I did one this morning with NatWest. There are two products with better value over the five years.

NatWest is now taking childcare into account, so that USP is now gone.

Affy9

kingstreet wrote: »

Childcare making a hole in affordability by any chance Affy?

Yes, I have CSA payments for my eldest and two young children (3 and 1 - Obviously only had 1 at time of application!) - Part of the reason that I'm reluctant to go back to Market next year if I don't have to.


The irony is, we have no child care costs. 3yr old gets the 30 hours free at nursery and family look after the 1 year old whilst my wife is at work. However, from what I understand, that doesn't matter to a lender, that assume we will have to pay child care even if we don't... My 15 year old doesn't live with me and is off to work straight from school so his CSA will stop next July but, we still have to account for it if we apply as I understand.



This is what frustrates me the most - They take into account all our current expenditure (even though it's definately stopping - CSA, small bit on CC which will be cleared in 8 months) but then also assume that our circumstances will change to our detriment and will have to pay child care etc...


I'm an Insurance Underwriter so I understand the process of risk analysis but it feels like a double edged sword.

davidwood681

Affy9 wrote: »

Thanks for the replies.


Foxystoat - Just curious about your comment re Natwest as a FTB? They were the only major lender to offer us a good rate anywhere in the ball park of what we wanted to offer - Nationwide were £50k short and Halifax (my bank) were £100k short!! Had no issues with them, and happy to stay but, ultimately, I don't want to pay through the nose so it's whether their retention deal is significantly better than taking the options back to market.



Cheers,


Affy

My son was a ftb with Natwest. Not sure what that comment was about

MortgageAdviserTorquay

you need to review the mortgage 4 months before the end date to assess whether it is more cost effective to switch your product with Natwest or switch to another lender and complete a remortgage