Appointment needed for NatWest product transfer

t.g.jones43

Hi all

Currently have a 2.09% 2yr fix with NatWest, ends in June 2023. Decided we should pay the ERC (£2100) to transfer to a 5 year fix at 3.77% with NatWest. Thought this would be a straightforward process given we are staying with the same bank but they are saying we need a Zoom appointment to go through this and there aren't any available until mid-November, by which time we'll no doubt be looking at fixes with much higher interest rates.

Is this normal to require an advisor appointment when transfering to a new mortage with the same lender?

Thank you. 

K_S

@t.g.jones43 Not every lender requires it, but quite a few lenders do insist on an advice call when an ERC is involved. It's to protect them from the borrower later complaining about forking over a substantial amount of ERC without being given advice.

An option to hedge your bets is to get a remortgage offer from another lender and then compare it to what NatWest offers in November to decide whether to go ahead with the remortgage (new lender) or the product-switch (NatWest).

Lloyds is/was offering a similarly priced 5 year fix, though the other options available are mostly upwards of 4%. 

t.g.jones43 said:

Hi all

Currently have a 2.09% 2yr fix with NatWest, ends in June 2023. Decided we should pay the ERC (£2100) to transfer to a 5 year fix at 3.77% with NatWest. Thought this would be a straightforward process given we are staying with the same bank but they are saying we need a Zoom appointment to go through this and there aren't any available until mid-November, by which time we'll no doubt be looking at fixes with much higher interest rates.

Is this normal to require an advisor appointment when transfering to a new mortage with the same lender?

Thank you. 

jonnypb

t.g.jones43 said:

Hi all

Currently have a 2.09% 2yr fix with NatWest, ends in June 2023. Decided we should pay the ERC (£2100) to transfer to a 5 year fix at 3.77% with NatWest. Thought this would be a straightforward process given we are staying with the same bank but they are saying we need a Zoom appointment to go through this and there aren't any available until mid-November, by which time we'll no doubt be looking at fixes with much higher interest rates.

Is this normal to require an advisor appointment when transfering to a new mortage with the same lender?

Thank you. 

Unfortunately yes when a ERC is involved.  I was in the same boat with the Natwest and the advisor said normally you can get an appointment the same week, but with all the recent events loads of people are trying to sort their mortgages out which has led to a 6 week or more wait time for an appointment.  The current earliest appointments available for the Natwest will be after the next BoE interest rate announcement. 

ElwoodBlues

Yes, I was told exactly the same when I phoned NatWest yesterday. I asked them if I wen through a broker instead, would I be able to avoid needing an appointment with a Natwest advisor and they said it was fine to do it that way instead. Called my broker but he said Natwest won't let him touch existing mortgages until the 6 month window opens. I'm still 15 months away from my fix expiring. Very irritating. I'm going to make the appointment, but fully expecting the goal posts to have moved by mid Nov.

K_S

ElwoodBlues said:

Yes, I was told exactly the same when I phoned NatWest yesterday. I asked them if I wen through a broker instead, would I be able to avoid needing an appointment with a Natwest advisor and they said it was fine to do it that way instead. Called my broker but he said Natwest won't let him touch existing mortgages until the 6 month window opens. I'm still 15 months away from my fix expiring. Very irritating. I'm going to make the appointment, but fully expecting the goal posts to have moved by mid Nov.

@elwoodblues Your broker is indeed correct, NatWest don't allow brokers to handle PTs if there's an ERC involved, I have a couple of frustrated clients as well in the same boat. I've got them remortgage offers from other lenders so if NatWest PT rates go up in the meantime, they have an option to fall back on.

ElwoodBlues

K_S said:

ElwoodBlues said:

Yes, I was told exactly the same when I phoned NatWest yesterday. I asked them if I wen through a broker instead, would I be able to avoid needing an appointment with a Natwest advisor and they said it was fine to do it that way instead. Called my broker but he said Natwest won't let him touch existing mortgages until the 6 month window opens. I'm still 15 months away from my fix expiring. Very irritating. I'm going to make the appointment, but fully expecting the goal posts to have moved by mid Nov.

@elwoodblues Your broker is indeed correct, NatWest don't allow brokers to handle PTs if there's an ERC involved, I have a couple of frustrated clients as well in the same boat. I've got them remortgage offers from other lenders so if NatWest PT rates go up in the meantime, they have an option to fall back on.

Yes, my broker had a quick look, and Natwest was still the best on the market by a long way (3.69%). Next best was Santander at 4.44%, and TSB had a 10 yr at 4.1%. My LTV is 27%. I'd take 3.69, but I don't think it's worth going up much higher (for me anyway).  Will just have to weather the storm.