Remortgaging From NatWest

Why Do People Remortgage From NatWest?

NatWest customers look to remortgage for many of the same reasons as borrowers with other lenders, but the relatively high SVR makes the incentive especially strong:

• One of the highest SVRs — NatWest's SVR of around 7.24% is noticeably higher than several competitors, including HSBC (approximately 6.49%) and the Lloyds Banking Group brands (approximately 6.99%). This means NatWest customers on the SVR are paying more than many of their peers with other lenders.
• Desire for certainty — Many NatWest customers who have been on a tracker or variable rate decide to remortgage to a fixed rate with another lender to gain certainty over their monthly outgoings, particularly in times of economic uncertainty.
• Better LTV deals elsewhere — NatWest's pricing at various loan-to-value tiers may not always be the most competitive. If you have built significant equity in your home, other lenders may offer considerably better rates for your LTV band.
• Dissatisfaction with service — While NatWest has invested heavily in digital banking, some mortgage customers report frustration with the product transfer process or find that other lenders offer a smoother remortgage experience.

NatWest Group's underwriting criteria apply across NatWest, Royal Bank of Scotland, and Ulster Bank. If one of these brands has not been able to offer you what you need, the same may apply to the others. Looking outside the group opens up a much wider range of possibilities.

NatWest SVR and Current Rate Landscape

NatWest's standard variable rate is currently around 7.24%, placing it at the higher end of the spectrum among major UK lenders. This rate is shared by its sister brand, Royal Bank of Scotland, and is approximately 0.25% higher than the SVRs charged by Lloyds Banking Group brands and 0.75% above HSBC's SVR.

What does this cost in practice?

On a £225,000 repayment mortgage with 20 years remaining, the NatWest SVR of 7.24% would result in monthly payments of approximately £1,779. Remortgaging to a fixed rate of 4.5% would bring that down to around £1,424 — a monthly saving of £355, or more than £4,260 per year. Over a five-year fixed period, the total saving could exceed £21,000.

Why is NatWest's SVR higher?

Each lender sets its SVR independently, and there is no regulatory requirement for them to be aligned. NatWest's SVR reflects the bank's own commercial decisions and cost base. Regardless of the reason behind it, the practical effect is that NatWest customers who remain on the SVR are paying more than they need to, and more than many customers at other banks.

Tracker rate customers

If you are currently on a NatWest tracker rate that follows the Bank of England base rate, your rate may already be competitive. However, if the tracker period is ending and you face a reversion to the SVR, the case for remortgaging is clear.

How to Remortgage From NatWest

Remortgaging from NatWest follows the standard UK process, and NatWest provides good online tools to help you understand your current position. Here is how to proceed:

• Check your NatWest mortgage details — Log into the NatWest app or online banking to view your current balance, rate, and deal end date. NatWest also provides a mortgage maturity date and details of any early repayment charges that apply. You can request a formal redemption statement for a precise payoff figure.
• Explore the market — Use a mortgage broker or comparison service to see what deals are available for your circumstances. Pay attention to the total cost, including arrangement fees, rather than just the headline interest rate.
• Consider NatWest's retention offers — NatWest will typically offer existing customers a product transfer to avoid losing them. These can be arranged online without a full application, making the process quick and straightforward. However, always compare these offers against the wider market.
• Make your application — Whether you are switching to a new lender or taking a NatWest product transfer, you will need to provide up-to-date financial information. For a full remortgage, expect a credit check, affordability assessment, property valuation, and legal work.
• Complete the switch — Your new lender redeems the NatWest mortgage and your new deal takes effect. NatWest will confirm the closure of your mortgage account.

NatWest's online tools make it easy to request a redemption statement and view your deal details, which helps streamline the process.

Things to Check Before Switching From NatWest

Before you finalise your decision to remortgage away from NatWest, consider these important points:

Early repayment charges

NatWest applies ERCs during the initial rate period, and these vary by product. Typical fixed rate products carry ERCs that taper over the deal period — for instance, 3% in year one reducing to 1% in the final year. Request a redemption statement from NatWest to see the exact ERC amount that would apply if you redeemed your mortgage today.

NatWest Reward account benefits

If you hold a NatWest Reward current account, you may receive cashback or other benefits linked to your banking relationship. While these are generally not dependent on holding a mortgage with NatWest, it is worth checking whether any perks would be affected by switching your mortgage away.

Green mortgage options

NatWest has been one of the more proactive lenders in offering green mortgage products, with preferential rates for energy-efficient properties. If your home has a high EPC rating, check whether NatWest's green mortgage rates are competitive before looking elsewhere — though be aware that other lenders are increasingly offering similar green incentives.

Overpayment allowances

NatWest typically allows overpayments of up to 10% of the outstanding balance per year during the initial rate period without penalty. If you have been making regular overpayments and value this flexibility, ensure your new lender offers comparable terms.

Mortgage cashback

Some NatWest mortgage products include cashback upon completion. If you received cashback, check whether it is repayable if you remortgage within a specified period.

Why Using a Broker Helps When Leaving NatWest

While NatWest makes it relatively easy to explore product transfer options through its app and online banking, these tools only show you what NatWest offers. A mortgage broker expands your view to the entire market, which is particularly valuable for NatWest customers for the following reasons:

Highlighting the SVR gap

Because NatWest's SVR is among the highest on the high street, the potential savings from remortgaging may be greater for NatWest customers than for those with lenders charging lower SVRs. A broker can quantify these savings precisely and present you with the most cost-effective options.

Avoiding group limitations

NatWest Group encompasses NatWest, Royal Bank of Scotland, and Ulster Bank. A broker understands that applying to one of these sister brands is unlikely to produce a meaningfully different outcome, and will instead focus on the hundreds of lenders outside the group who may offer better terms.

Fee-versus-rate analysis

The cheapest headline rate is not always the best deal once arrangement fees are factored in. A broker can perform a total cost comparison, showing you which combination of rate and fee delivers the lowest overall cost for your planned deal period. This analysis is particularly important for NatWest customers who may be drawn to eye-catching rates without considering the full picture.

Speed and efficiency

If you are already on the NatWest SVR and keen to switch as quickly as possible, a broker can expedite the process by recommending lenders known for fast turnaround times and managing the application from start to finish.