NatWest can trace its beginnings back to the 1650s. In 1968 National Provincial Bank merged with Westminster Bank to form National Westminster Bank. In March 2000, The Royal Bank of Scotland Group acquired NatWest in a £21 billion deal. NatWest is now part of a financial services group, the second largest bank by market capitalisation in the UK and in Europe and ranks fifth worldwide.
NatWest has the following types of mortgage:
Offset Flexible
NatWest One
Discounted Variable Rate
Fixed Rate
100% Mortgage
Offset Flexible: your mortgage will be offset against your current and up to 3 savings accounts, and your rate will be set at a variable rate for your mortgage life’.
There is an arrangement fee
You can make overpayments and subsequently make underpayments and even take payment holidays
There is no early repayment charge
NatWest One: you combine all of your banking into one account. This means that you use the same account to borrow and to save. Your interest rate will depend on the amount you want to borrow compared to how much the property will cost.
There is no early repayment charge
Discounted Variable Rate: your initial rate is discounted off NatWest’s standard variable rate for an agreed period. NatWest has discount mortgages for 1 and 2 years. Your interest rate will also depend on the amount you want to borrow compared to how much the property will cost. After the discount rate period your mortgage converts to NatWest’s standard variable rate.
An early repayment charge applies
You can repay up to 10% of your mortgage annually without incurring an early repayment charge
An arrangement fee is payable
Fixed Rate: your starting rate is fixed for an agreed period. NatWest has fixed rate mortgages for 2, 3 and 5 years. Your interest rate will also depend on the amount you want to borrow compared to how much the property will cost. After the fixed rate period your mortgage goes back to NatWest’s standard variable rate.
An early repayment charge applies
An arrangement fee is payable
100% Mortgage: you can apply for a mortgage of up to £175,000 without the need to raise money for a deposit. You can choose from a fixed or discount rate. You can switch to another mortgage product if your LTV falls to 95% or less. Your rate will convert to NatWest’s standard variable rate after the agreed period is over.
An early repayment charge applies
An reservation fee is payable
NatWest also offers the following mortgages:
Advantage Mortgage
Re-mortgage Deals
Advantage Mortgages: these have all the features of the fixed and discount mortgages but at better rates as borrowers are proven NatWest customers. After the agreed period has finished your rate will convert to NatWest’s standard variable rate.
Early repayment charges apply except on re-mortgage and advantage premier discount products
Fees may apply
Re-mortgages: you can choose from fixed or discounted products. After the deal period has finished your rate will go back to NatWest’s standard variable rate.
NatWest will pay your valuation and legal fees if you switch and re-mortgage with them
NatWest also offers Buy to Let mortgages for investment purposes: you can select either fixed, variable or tracker products, and you can purchase up to a maximum of 5 properties in addition to your main property.
Fixed: your starting rate will be fixed for 2 or 5 years. It will then convert to NatWest’s Buy to Let standard variable rate.
Early repayment charges apply
Variable: your rate will be set at NatWest’s Buy to Let standard variable rate for the entire mortgage term.
There is no early repayment charge
Tracker: your rate is set above the NatWest Bank Base Rate for a 2 year period. Your rate then goes back to NatWest’s Buy to Let standard variable rate.
An early repayment charge applies
There is also a lifetime tracker product which is set for the entire mortgage, and it does not have an early repayment charge
An arrangement fee applies