NatWest cuts ERCs
It is introducing a new tiered system for its ERCs. For 2-year fixed rate deals – the new standard ERCs will be 2% for Year 1 and 1% for Year 2, for 3-year fixed rate deals – the new standard ERCs will be 3% for Year 1, 2% for Year 2 and 1% for Year 3.
On the 18 month and 2-year tracker deals – the new standard ERCs will be 1% for Year 1 and 0.5% for Year 2.
Mark Bullard, head of sales, NatWest Intermediary Solutions said: “We have continued to look for improvements to our intermediary offering so I am delighted that we have been able to introduce lower ERCs.
“This good news coupled with the rate reductions we have made on a wide range of our lower LTV deals should continue to make a compelling proposition for intermediaries and their clients.”
The new lower LTV deals include a cut to the rate on its 18 month 75% LTV tracker by 0.79% to 2.20%; reducing the rate on its 2-year fixed rate 75% LTV Help to Buy shared equity purchase deal by 0.30% to 2.85%; cutting 0.40% of its 2-year tracker 75% LTV deal to 2.75% and trimming its 2-year fixed rate 60% LTV by 0.05% to 1.89%.
NatWest is also increasing rates on some of its 85% LTV residential deals and rates and fees on some of its buy-to-let mortgages.