The lender will introduce a new tiered system for its two-year fixed rate deals which will mean ERCs in year 1 are 2% and 1% for year 2. Previously it was 3% for Years 1 and 2.
For three-year fixed rate deals the standard ERCs will be 3% for Year 1, 2% for Year 2 and 1% for Year 3. Previously, it was 3% for years 1, 2 and 3.
On 18 month and two-year tracker deals the standard ERCs will be 1% for Year 1 and 0.5% for Year 2. Previously, it was 3% for Years 1 and 2.
The lender also plans to cut rate on a number of its residential and buy-to-let range tomorrow.
Mark Bullard (pictured), head of sales at NatWest Intermediary Solutions, said: “We have continued to look for improvements to our intermediary offering so I am delighted that we have been able to introduce lower ERCs.
“This good news coupled with the rate reductions we have made on a wide range of our lower LTV deals should continue to make a compelling proposition for intermediaries and their clients.”
