So much for being a loyal Natwest customer!

Hello,

I am nearing the end of a 5 year fix with Natwest, the mortgage is currently at 44% LTV based on the Natwest estimate of my house. When I log into my account and check the rates they'll offer me, the best 5 year fix is 4.94% with a £995 fee. However I can see that Natwest are offering a 5 year fix for 60% LTV at 4.68% with £1495 fee for remortgage customers moving from other lenders.

Is is normal to offer a worse rate to existing customers? Is there any way that I could get the lower rate from them?

Thanks,

DM
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Comments

  • Brie
    Brie Posts: 9,298
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    Shop around and see what the alternatives are.  And then go back to NW and ask about giving you the better rate.
    "Never retract, never explain, never apologise; get things done and let them howl.”
  • cymruchris
    cymruchris Posts: 4,882
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    Loyal customers these days equate to daft customers who don't shop around. There will be those that will shrug their shoulders and accept whatever they're offered. Then there are those (like you) who will search out a better deal. Don't be a loyal customer, do what's best for your pocket not their profits.
    An ex-bankrupt on a journey of recovery. Feel free to send me a DM reference credit building credit cards from the usual suspects :) Happy to help others going through what I've been through!
  • housebuyer143
    housebuyer143 Posts: 3,168
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    edited 26 December 2023 at 5:24PM
    Arguably a rate switch is infinitely less hassle than a remortgage, so you are paying a fraction more for ease. This is nothing new. I would probably take the slightly higher rate to save the time and effort involved in moving lenders.
  • Edi81
    Edi81 Posts: 1,426
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    How much is outstanding on the mortgage? Without that we can’t say if the new customer rate is actually better. 
  • Hoenir
    Hoenir Posts: 1,236
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    Are the Natwest offering you are fee free rates? 
  • RelievedSheff
    RelievedSheff Posts: 11,122
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    That's quite a high product fee on the slightly lower rate. Does it work out worthwhile paying that for what is a small rate difference?
  • ACG
    ACG Posts: 23,621
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    Its not all rate driven. 
    If your mortgage is relatively small, you might find the higher rate and lower fee is actually cheaper. 
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Thanks a lot for all your responses, the outstanding mortgage is £230k so the 4.68% is definitely cheaper. The reason I'm keen to stick with Natwest is I quit my job at the start of 2023 and had 9 months off so have only recently started working as a contractor which may limit my options.

    As for Natwest, their rates are complete nonsense and I'm half tempted just to pay the mortgage off and be done with it. Just for context, I have an LTV of 44% and have paying my mortgage to Natwest, with no problems for nearly 5 years and they offer me a 5 year fix at 4.94% with the £995 fee. Yet Natwest, currently offer a first time buyer with no mortgage history at 85% LTV a 5 year fix at a rate of 4.81% with the same fee plus £250 cashback. I have worked in banking for 15 years now and when I see loans being priced like this I am completely baffled by the stupidity. It makes me wonder if after all Natwest have been through  they actually understand credit risk. Are they running a charity or a bank here? 
  • Zoe02
    Zoe02 Posts: 434
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    Based on different lenders. If you can switch offer better more competitive options. 

    I am opting for 2 years fixed no product fee 65% LTV with virgin money at 5.1% actually works out cheaper going for no product fee option for me. Worth comparing the figures. 

    For 5 years fix £995 product fee is 4.71%

    5 years with no product fee is 4.85%

    Personally going for 2 years fixed as to me the rate currently is high and with no product fee.

    Csn use the link for comparison
     https://www.moneysavingexpert.com/mortgages/best-buys/?journeyType=first-time-buyer&propertyValue=120000&mortgageAmount=90000&depositAmount=30000&term=25&repaymentMethod=Repayment&sortBy=MonthlyRepaymentAmount&pageNumber=1&addFeeToBalance=false&productNoFee=false&noEarlyRepaymentCharge=false
  • RelievedSheff
    RelievedSheff Posts: 11,122
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    Thanks a lot for all your responses, the outstanding mortgage is £230k so the 4.68% is definitely cheaper. The reason I'm keen to stick with Natwest is I quit my job at the start of 2023 and had 9 months off so have only recently started working as a contractor which may limit my options.

    As for Natwest, their rates are complete nonsense and I'm half tempted just to pay the mortgage off and be done with it. Just for context, I have an LTV of 44% and have paying my mortgage to Natwest, with no problems for nearly 5 years and they offer me a 5 year fix at 4.94% with the £995 fee. Yet Natwest, currently offer a first time buyer with no mortgage history at 85% LTV a 5 year fix at a rate of 4.81% with the same fee plus £250 cashback. I have worked in banking for 15 years now and when I see loans being priced like this I am completely baffled by the stupidity. It makes me wonder if after all Natwest have been through  they actually understand credit risk. Are they running a charity or a bank here? 
    If you don't like what they are offering go elsewhere. 

    Doesn't sound like you will have the simplest case to place with a new lender though.
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