Natwest

StevenGude

Sorry if this seems a daft question.. I've logged onto my natwest mortgage account and the renewal deals are about 0.5-1% higher than the new customer rates on their website.
Never missed a payment or anything, never had an issue with them..

Is this normal? Has anyone else had this problem? I plan on calling them but wanted to see if it was a common problem first.

ACG

It is normal. They have enticed you in.
They are now relying on you thinking it is better to pay an extra £5-10 a month or whatever it is than applying to go elsewhere.

Save the phone call, they wont offer you anything different.

Down to you to decide to stick with them or go elsewhere.

bigisi

Why is it a problem?

Perfectly normal for loyalty products to be higher than new customer offerings.

Thrugelmir

Nothing unusual in offering promotional rates to attract new business. Funds will be limited. Hence why not offered to the broader customer base.

amnblog

Anyone was has purchased car insurance will be familiar with this type of policy.

muhandis

0.5-1% or 0.05-0.10% higher?

StevenGude wrote: »

Sorry if this seems a daft question.. I've logged onto my natwest mortgage account and the renewal deals are about 0.5-1% higher than the new customer rates on their website.
Never missed a payment or anything, never had an issue with them..

Is this normal? Has anyone else had this problem? I plan on calling them but wanted to see if it was a common problem first.

StevenGude

Around 0.5% for the cheapest product offered o a 5 year. A quick example is 5year 2.38% v 2.81%

I only asked of it was normal as natwest were quoted in which denying that they did this last year.

I appreciate this happens on insurance and other products but didnt know of it was standard practice on mortgages.

muhandis

Wow that is crazy. I hope you are comparing like for like.

Here is what I can see on the Natwest for Intermediary website for 60% LTV product transfer vs remo, the rates are comparable and in some cases much cheaper for existing customers.

Product transfer (existing customers)


Remo (new customers)

StevenGude wrote: »

Around 0.5% for the cheapest product offered o a 5 year. A quick example is 5year 2.38% v 2.81%

I only asked of it was normal as natwest were quoted in which denying that they did this last year.

I appreciate this happens on insurance and other products but didnt know of it was standard practice on mortgages.

StevenGude

Thanks for the info. I'm looking direct on my mortgage portal through natwest and at 90% ltv

muhandis

This is what I can see for 90% LTV 5 year fixes

Switchers (existing customers)
No fee/No cashback - 3.74%
£995 fee/No cashback - 2.40%

Remo (new customers)
No fee/No cashback - 3.74%
£995 fee/£250 cashback - 2.38%

Maybe intermediaries get rates that aren't available directly, even for product switches?

The differences you've quoted seem massive, are you sure you've taken into account fees, cashback, etc?

StevenGude wrote: »

Thanks for the info. I'm looking direct on my mortgage portal through natwest and at 90% ltv

StevenGude

How do I switch deal with an intermediary?

Could you link me to that 2.4% deal please?

Thanks so much