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Cherrypicking tracker from Nat West

Nat West Intermediary Solutions – Core Range 2-Year Tracker Remortgage

Type: Tracker remortgage

Tracker term: Until November 30, 2012

Tracker rate: 1.69% above the Bank of England base rate

Payable rate: 2.19%

Minimum loan: £25,000

Maximum loan: Up to 60% of valuation subject to no maximum

Income multiples: Based on affordability

Conditions: Capital repayments of up to 10% a year allowed without penalty, free basic valuation, free basic legal fees

Arrangement fee: £999

Redemption fee: 3% of the amount repaid in the first two years

Introducer’s fee: Refer to lender

Tel: 08459 001110

This tracker remortgage is available for loans up to 60 per cent of valuation with a current pay rate of 2.19 per cent. It tracks at 1.69 per cnet above the Bank of England base rate for two years.

Highclere Financial Services partner Alan Lakey says: “Trackers have moved on from the glory days of 2007 when discounts off the base rate were readily available. Nonetheless this market leading offering from Nat West will prove extremely attractive to borrowers with at least 40 per cent equity as it undercuts virtually all competing rates with the exception of a couple of very high admin fee offers.”

Lakey notes that this mortgage is aimed at low risk, high quality remortgage customers. It has with free legal fees and valuation, with the ability to add the product fee to the loan. “Nat West is one of the more generous lenders in terms of affordability calculations,” says Lakey.

Turning to the less attractive features, Lakey says: “The product will appeal to those who believe future interest rate rises will be modest but there will be many borrowers who would prefer to secure their payments for a given period. Nat West implies that the loan is also available to purchasers, however this is not confirmed by details on their intermediary website and some clarity would be welcome.”

Highlighting the main competition, Lakey says: “For 60 per cent  borrowers Nat West will have little competition. Even those who prefer a true no fees product will find Nat West at the top of the table with an alternative base plus 2.15 per cent rate. Those consumers who for other reasons wish to avoid Nat West will be looking at Abbey, Northern Rock and Scottish Widows Bank.”

Summing up, Lakey says: “Nat West is clearly cherry-picking and rewarding lower risk borrowers with an excellent rate. This has proved a sound policy for other lenders such as HSBC and is likely to be just as successful for Nat West. The good news is that, unlike HSBC, Nat West is making these products available via advisers.”


Suitability to market: Good
Competitiveness of rate: Good
Flexibility: Good
Adviser remuneration: Good
Overall 9/10


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