NatWest Bucks Trend And Launches Fee Free Remortgage Deal
23 July 2008 / by Rebecca Sargent
NatWest has independently gone against the grain by launching a competitive new remortgage deal that is completely fee free.
The good news comes amid an announcement from mform.co.uk that fees on some of the most popular remortgage deals in the market have shot up by almost 60 per cent in a year.
In contrast, NatWest has chosen to shun increasing fees, offering a three year step down tracker mortgage available to anyone looking to remortgage with a loan-to-value (LTV) requirement of up to 90 per cent, absolutely fee free.
Other attractive features of the NatWest re-mortgage deal include the staggered interest rate that decreases each year, and a ‘Track & Switch’ facility allowing customers to switch to a different NatWest fixed rate mortgage after three months if they wish.
Andy Fell, head of branch mortgages at NatWest, said: “At a time when there is uncertainty and complexity within the mortgage market, we wanted to offer our customers a competitive and transparent deal.
“With no set up fees and the downward stepping of interest rates, we are confident that our new deal will be popular with remortgage customers.”
According to figures from mform.co.uk, the NatWest mortgage deal is relatively rare in today’s mortgage market where fees have become commonplace as lenders tighten their restrictions.
The mform.co.uk research revealed that the average mortgage fee has risen by 20 per cent over the last year, with some of the most popular types charging 58 per cent more year-on-year.
Francis Ghiloni, marketing and business development director at mform.co.uk, said: “With the current challenges facing the mortgage market, it is not surprising to see that fees have risen by so much.
“This means that it has never been more important to look at the true cost of your mortgage, taking into account the interest rate but also any fees and charges that you have to pay.”
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