NatWest is to roll out its current account mortgage to advisers following a successful trial in its branch network earlier this year.
The NatWest One account combines a bank account, an overdraft and savings along with the mortgage into one account.
The roll out is to be phased and the product will initially be available to those advisers who work with Prudential Mortgage Services, Norwich Union IFA Club, Your Move, Connells, AXA, Farrell Heyworth and Burchell Edwards.
Charles Haresnape, head of NatWest Mortgage Services, said: ‘NatWest One has been a real innovation and is proving popular. This phased roll out is a natural progression and the product will become available to a wider audience over the coming months.’
The product has a rate of 5.95%, no early redemption penalties, daily interest charges and a maximum loan to value of 95%.
The mortgage is based on the existing product from Virgin, and is similar in almost every way, except the Virgin One account allows the borrower to split out the balances and view the accounts separately. Both lenders are owned by the Royal Bank of Scotland group.
Scott Mowbray, PR manager at Virgin said: ‘In terms of competition, it is all healthy internal competition and it will come down to branding. It is a clear sign that current account mortgages are growing in stature in the market.’