Brokers will be able to switch NatWest customers to a new deal with the lender from December 14 – but advisers have highlighted that the product transfer rates are frequently higher than for new borrowers.
The lender confirmed its product transfer strategy in November with a 0.2% procuration fee for brokers.
The new product transfer rates include a two-year fixed-rate at 60% loan to value (LTV) at a rate of 2.69% – but the equivalent rate for a new customer is 2.4%.
NatWest is also offering a five-year fix at 60% LTV priced at 2.44% for product transfer with a £995 fee – whereas new customers get 0.75% discount with a rate of 1.79%.
Commenting on the product transfer rates on Twitter, broker Sebastian Riemann said: “The rates released by Natwest are at least 0.25% higher at 60% ltv than for new borrowers. Is this treating customers fair?”
This concern has been echoed by other brokers.
However, in some cases the rates for existing borrowers are lower than for new customers.
For example, a product transfer five-year fixed-rate at 60% LTV without fee is priced at 2.44%, whereas the same product for new business is priced at 3.2%.
Not for borrowers who want mortgage terms changed
The product transfer facility is available for both residential and buy-to-let business for customers who are within their roll-off period, those on a standard variable rate (SVR) and those with track and switch functionality.
The balance available to switch must also meet the new product minimum of £25,000.
And it is not available to customers who want to exit an existing deal ahead of the roll-off period, those customers wishing to take on extra borrowing, change the mortgage terms or repayment type or those whose mortgage is in arrears.
Graham Felstead, head of intermediary mortgages at NatWest, (pictured) said: “We have had a great deal of positive feedback on this launch since we announced it last month.
“We’ve made every effort to make sure that the online process is easy-to-use and brokers will have the support of our team of BDMs and LiveTALK if they need help.”