It is introducing a new tiered system for its ERCs:
• 2 year fixed rate deals - the new standard ERCs will be 2% for Year 1 and 1% for Year 2. Previously it was 3% for Years 1 and 2.
• 3 year fixed rate deals – the new 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.
• 18 month and 2 year tracker deals - the new standard ERCs will be 1% for Year 1 and 0.5% for Year 2. Previously, it was 3% for Years 1 and 2.
NatWest is also introducing a number of rate changes to its 60-75% LTV deals in its intermediary core range. This includes cutting the rate on its 18 month 75% LTV tracker by 0.79% to 2.20%; reducing the rate on its 2 year fixed rate 75% LTV Help to Buy shared equity purchase deal by 0.30% to 2.85%; cutting 0.40% of its 2 year tracker 75% LTV deal to 2.75%; and trimming its 2 year fixed rate 60% LTV by 0.05% to 1.89%.
The residential purchase and remortgage fixed rate deals that are having their rates reduced are:
• 2 year fixed rate is decreasing to 1.89% from 1.94%, 60% LTV, £995 product fee
• 2 year fixed rate is decreasing to 2.05%% from 2.09%, 70% LTV, £995 product fee
• 2 year fixed rate is decreasing to 2.59% from 2.69%, 70% LTV, no product fee
• 2 year fixed rate is decreasing to 2.30% from 2.35%, 75% LTV, £995 product fee
• 2 year fixed rate is decreasing to 2.85% from 3.15%, 75% LTV, no product fee
• 2 year fixed rate Help to Buy shared equity is decreasing to 2.85% from 3.15%, 75% LTV, no product fee
• 3 year fixed rate is decreasing to 2.25% from 2.34%, 60% LTV, £995 product fee
• 3 year fixed rate is decreasing to 2.59% from 2.79%, 60% LTV, no product fee
• 3 year fixed rate is decreasing to 2.39% from 2.45%, 70% LTV, £995 product fee
It is also reducing rates on a number of its residential purchase and remortgage tracker deals:
• 18 month tracker is decreasing to 2.20% from 2.99%, 75% LTV, adding a £995 product fee
• 2 year tracker is decreasing to 1.79% from 1.94%, 60% LTV, £995 product fee
• 2 year tracker is decreasing to 2.39% from 2.49%, 60% LTV, no product fee
• 2 year tracker is decreasing to 2.49% from 2.69%, 70% LTV, no product fee
• 2 year tracker is decreasing to 2.75% from 3.15%, 75% LTV, no product fee
NatWest is also increasing rates on some of its 85% LTV residential deals and rates and fees on some of its buy-to-let mortgages.
Mark Bullard, Head of Sales, 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.”
