NatWest has further reduced its sub-4% mortgage deal that is only available to direct customers. The new five year fixed rate deal is 3.83% – compared to 3.89% for broker business.

As with the previous rate offer from Natwest, the broker community has expressed serious concerns on the dual pricing.

John Charcol mortgage technical manager Nick Mendes said he was deeply disappointed with NatWest’s decision to lower its direct-only mortgage rate to 3.83% with a £1,495 fee.

“This further widens the gap between what they offer directly to customers and what’s available through brokers, currently standing at 3.89% with the same £1,495 fee. It’s frustrating to see that feedback from the last time hasn’t been taken on board. This latest deal puts them ahead of the current best buy from Barclays, which is 3.84% with a £899 fee.”

Mendes said the move felt like another clear sign that NatWest was neglecting the broker community rather than working to strengthen the  relationship.

“Brokers play a crucial role in the mortgage market, helping clients navigate complex decisions and ensuring they find the right products. By continuing down this path, NatWest risks alienating brokers and undermining the trust that has been built over time.

He added: “I had hoped that after the previous feedback, NatWest would take steps to close this gap, not widen it further. Unfortunately, this latest move suggests otherwise, and it’s disheartening to see that the value of brokers in the market isn’t being recognised as it should be.

“In my view, it’s vital for NatWest to reconsider this approach and take meaningful steps to rebuild its relationship with brokers. The success of the mortgage market depends on collaboration, and it’s in everyone’s best interest to work together. I hope NatWest will acknowledge the importance of this and make the necessary adjustments.”

Trinity Financial product and communications director Aaron Strutt commented “The price difference between NatWest’s five-year fixes for direct business and via brokers is pretty small and the arrangement fees differ. However, many borrowers now want the cheapest headline rates to keep their monthly repayments low, making it tricky for brokers, especially when lenders have two separate rates.”

But he added: “With so many lenders now offering sub-4% five-year fixes there is a lot more choice in the market so one or two lenders having direct-only new customer rates does not make a huge difference to brokers.”

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