The deal you can’t get
NatWest £1,000 Mortgage Challenge
Julia Harris, Mortgage Analyst at Moneyfacts.co.uk – the money search engine, comments:
“While it is great news to see NatWest encouraging borrowers to remortgage to a better deal, the £1,000 mortgage challenge is little more than a marketing ploy to entice borrowers through the door. It is pleasing to see one of the big five banks taking a stand and challenging its competitors, rather than resting on its laurels, relying on its brand and existing customers.
“This is by far the largest price promise we have seen, and is the only lender to currently offer such a challenge. But with so many caveats to the deal, it makes it a sure fire win for NatWest. Here are the rules:
- Existing mortgage with: Halifax, Abbey, C&G (Lloyds TSB) and Woolwich (Barclays)
- Minimum mortgage of £50K, with a maximum LTV of 75%
- Excludes internet, staff concessionary, BTL, stepped, offset, current account, extended tie in and products with arrangement fees greater than £999.
- Monthly repayment comparison is made against NatWest 2 year Base Rate Tracker at 5.14%
“As the comparison charts show, the deal used for comparison used by NatWest is unbeatable, based on the monthly repayments of the deals from the four lenders which match the challenge criteria. The £1,000 challenge is therefore somewhat of an empty promise.
Comparison Deal
| Lender | Product |
LTV |
Fee |
Incentives |
NatWest |
5.14% to 30.6.09 |
75% |
£699 |
Option to switch to a fixed rate |
Fixed Rates |
|||||
Lender |
Product |
LTV |
Fee |
Incentives |
|
Abbey |
5.39% to 2.8.09 |
90% |
£499 |
Free ASU for 3 months |
|
Halifax |
5.69% to 30.6.09 |
85% |
£999 |
Remortgages: £200 rebate, free legal fees and free valuation |
|
C&G / Lloyds TSB |
5.69% to 31.5.09 |
90% |
£799 |
Remortgages: free valuation. England / Wales free legals. Scotland / NI £400 rebate |
|
Woolwich / Barclays |
5.39% to 30.6.09 |
80% |
£995 |
Remortgages: £200 rebate or free legal fees and free valuation |
|
Tracker Rates |
|||||
Abbey |
5.19% for 2 years |
90% |
£499 |
Free ASU for 3 months |
|
Halifax |
5.49% to 30.6.09 |
85% |
£999 |
To 90% no HLC. Remortgages: £200 rebate, free legals, free valuation |
|
C&G / Lloyds TSB |
5.39% to 30.6.09 |
90% |
£999 |
Remortgages: free valuation. England / Wales free legals. Scotland / NI £400 rebate |
|
Woolwich / Barclays |
5.54% for 2 years |
95% |
£995 |
Remortgages: free valuation, free legals or £200 cash back |
|
Moneyfacts.co.uk – the money search engine |
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“While the challenge will ensure the lowest possible monthly repayment is achieved between the lenders in question, it is also important to mention that when switching mortgage providers, the monthly repayment and the headline rate are only part of the picture. Switchers must look at the whole mortgage package, including the rate, fees, incentives and flexibility.
“If you are remortgaging, don’t limit yourself to one lender; shop round the whole market, it’s sometimes the smaller regional building societies which top the charts with the best deals.
“So why not take the moneyfacts.co.uk challenge to find the best deal from the whole of the market? With over 10,000 mortgages available there is bound to be a deal which is tailor made your individual circumstances.
“If you do fit into the slightly limited criteria set by the NatWest mortgage challenge, it can be a pretty competitive deal. But as each and every one of us will have difference circumstances, it is still wise to search the whole market. It may be that you want a low rate high fee combination, or value the incentives cash back or flexible features other mortgage deals may offer. “
Think carefully before securing other debts against your home, your home may be repossessed if you do not keep up repayments on your mortgage.
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