So much for being a loyal Natwest customer!

demontfort

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

Brie

Shop around and see what the alternatives are.  And then go back to NW and ask about giving you the better rate.

cymruchris

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.

housebuyer143

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

How much is outstanding on the mortgage? Without that we can’t say if the new customer rate is actually better. 

Hoenir

Are the Natwest offering you are fee free rates? 

RelievedSheff

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

Its not all rate driven. 
If your mortgage is relatively small, you might find the higher rate and lower fee is actually cheaper. 

demontfort

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

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

demontfort said:

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.