You are here: Home - News -

Brokers query NatWest product transfer rates

  • 12/12/2017
  • 0
Brokers query NatWest product transfer rates
NatWest Intermediary Solutions has revealed its product transfer deals ahead of this week's launch of its product transfer fee.

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.”

There are 1 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.

Read previous post:
Christmas crackers: Our pick of the best 2017 reader comments

Some of the most interesting and insightful comments on industry issues come from you, our readers, so we've selected a...