Natwest mortgage rates?

vienly

Hi All - my 5 year mortgage rate with Natwest is due to end on 31st December 2025 and the best product transfer rate they are currently offering for a 5 year fixed deal is 3.83%

With the upcoming BOE base rate decision on the 18th December, assuming BOE base rate will drop to 3.75%, how quickly does Natwest drop their remortage product transfer interest rates?

I will only have 6 working days between 18th Dec and 31st Dec before my mortgage rolls over to their SVR which is hefty.

Has Natwest already factored in BOE base rate drop and won't drop it any further until next year?

Should I just lock in their 3.83% 5 year remortgage rate?



Thank you

la531983

Will already be factored into rates months in advance. They wont all suddenly drop them the same day or a day after

vienly

la531983 said:

Will already be factored into rates months in advance. They wont all suddenly drop them the same day or a day after

Thanks, if that's the case I will have to reapply for that rate then, I only just cancelled it 

Me4355

Wow, that is a hefty set up fee 😳. What’s the rate for no fee?

poseidon1

Me4355 said:

Wow, that is a hefty set up fee 😳. What’s the rate for no fee?

Agree, and how much is being borrowed to justify paying such a high fee?

lovemula21

Yes, they have already factored it in. I’ve been monitoring NatWests rates and they have slightly decreased this week. 

lovemula21

I just want to ask (no pressure to answer), did you get the option to fix without a fee? And will the fee be added on to the mortgage or will it be paid upfront? 

la531983

lovemula21 said:

I just want to ask (no pressure to answer), did you get the option to fix without a fee? And will the fee be added on to the mortgage or will it be paid upfront? 

Most providers will offer products with and without. The ones without a fee will likely have a higher interest rate. Nobody on here will know which is best because we dont know your overall balance etc.

Most will give you the option to pay it off there and then, or you can just make a lump sum payment to balance to cover it.

lovemula21

I was asking the OP about their situation in order to offer helpful advice. 

NatWest also have a product transfer for a 5 year fix which is 3.98% without a fee. I was wondering if it was offered here or not because it works out cheaper over the long run. 

vienly

lovemula21 said:

I was asking the OP about their situation in order to offer helpful advice. 

NatWest also have a product transfer for a 5 year fix which is 3.98% without a fee. I was wondering if it was offered here or not because it works out cheaper over the long run. 

They are offering me 5 year fix 3.83% with a £999 upfront fee, borrowing £86k on a property around £450k.
They are also offering what you suggested 5 year fix 3.98% with £0 fee, but I think that works out more expensive as you would be paying 3.83% interest on that additional £999 (extra £191 over 5 years).

So I took whatever was cheapest.

lovemula21

vienly said:

lovemula21 said:

I was asking the OP about their situation in order to offer helpful advice. 

NatWest also have a product transfer for a 5 year fix which is 3.98% without a fee. I was wondering if it was offered here or not because it works out cheaper over the long run. 

They are offering me 5 year fix 3.83% with a £999 upfront fee, borrowing £86k on a property around £450k.
They are also offering what you suggested 5 year fix 3.98% with £0 fee, but I think that works out more expensive as you would be paying 3.83% interest on that additional £999 (extra £191 over 5 years).

So I took whatever was cheapest.

Thanks to replying with the extra info. Glad to see you got the best option for you. 

I find it really interesting seeing how the different options can be best for different circumstances. 👍🏻