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NatWest offers sub-4% mortgage deal directly to consumers with brokers concerned
High street lender NatWest is offering a sub-4% mortgage deal directly to consumers, which has raised concerns among brokers.
The minimum loan is £250,000, with early repayment charges (ERCs) starting at 4.5% in the first year, falling to 4.25%, then to 4%, 2.5% and finally 1%.
The deal is one of the cheapest on the market, following Nationwide bringing out a five-year fixed rate at 3.99% at the end of July.
The lowest five-year fixed rate at 60% LTV available to intermediaries with a £1,495 fee is 4.03%.
Nicholas Mendes, mortgage technical manager and head of marketing at NatWest, said: “It’s disappointing to see a lender offer a product exclusively for direct clients, especially given the significant volume of business that flows through intermediaries.
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“This approach seems short-sighted and overlooks the value and trust intermediaries bring to the lending process. It’s crucial to ensure fair and equal opportunities for all clients, regardless of their approach.”
Sources said that lenders’ pricing was subject to regular review and revision to offer best value to customers and accounted for several factors such as cost to serve, service levels and market competitiveness.
They said that this would mean different prices are available to different customers on different channels, but brokers were still a key avenue for lenders and had leading rates.
A NatWest spokesperson said: “We keep our products under continual review in line with market conditions.”