Mortgages Uncovered

With mortgage rates rising across the whole housing market, it is certainly refreshing to see a lender going for market share through the offering of a fee free remortgage.

NatWest will offer a 3 year step down tracker remortgage; this will be available to homeowners who have at least 10% equity in their properties, 90% loan to value. ‘Step down’ tracker means that the rate decreases every year of the mortgage term.

Customers have the added assurance that they can switch to fixed rate mortgages at any time after 3 months have elapsed. All of this is now being offered with ‘fee free’, i.e. this is with legal costs included as well as no arrangement fee.

Head of mortgages at NatWest, Andy Fell stated that during a time when the market is full of uncertainty and complexity, NatWest wanted to offer its customers a competitive and transparent deal. So with the abandonment of set up fees coupled with the downward stepping of interest rates, the bank are confident that their new deal will be popular with their remortgage customers.

One of the director’s at The Mortgage Provider Ltd said that prior to the credit crunch, people were spoilt for choice when lenders were falling over themselves to offer people fee free deals, in today’s market the recent NatWest announcement is very welcome.