NatWest has further reduced its sub-4% mortgage deal, which is only available to direct customers. The new five-year fixed rate is 3.83% – compared to 3.89% for brokerage activities.
As with Natwest’s previous rate offer, the broker community has raised serious concerns about the dual pricing.
John Charcol, technical mortgage manager Nick Mendes, said he was deeply disappointed by NatWest’s decision to cut mortgage rates on direct loans to 3.83% with a £1,495 fee.
“This increases the gap between what they offer directly to customers and what is available through brokers, currently 3.89% with the same fee of £1,495. It is frustrating to see that the feedback from last time was not taken into account. This latest deal puts them ahead of Barclays’ current best buy of 3.84% with a fee of £899.”
Mendes said the move felt like a clear sign that NatWest was neglecting the broker community instead of working to strengthen the relationship.
“Brokers play a crucial role in the mortgage market. They help customers make complex decisions and ensure they find the right products. By continuing on this path, NatWest risks alienating brokers and undermining the trust that has been built up over time.
He added: “I had hoped that following the previous feedback, NatWest would take steps to close this gap and not widen it further. Unfortunately, this latest move suggests otherwise, and it is disheartening to see that the value of agents in the marketplace is not being recognized as it should be.
“In my view, it is vital for NatWest to reconsider this approach and take meaningful steps to rebuild relationships with brokers. The success of the mortgage market depends on collaboration, and it is in everyone’s interest to work together. I hope that NatWest will recognize the importance of this and make the necessary adjustments.”
Aaron Strutt, product and communications director at Trinity Financial, commented: “The price difference between NatWest’s five-year fixes for direct and through brokers is quite small and arrangement costs differ. However, many borrowers now want the cheapest nominal interest rates to keep their monthly repayments low, making it difficult for brokers, especially when lenders charge two separate rates.”
But he added: “With so many lenders now offering five-year fixes below 4%, there is a lot more choice in the market, so one or two lenders that only have instant rates for new customers won’t make a big difference to brokers. ”