Mortgage rate change issue

[Myshoesarenew]

We are in the process of moving (and oh is it slow!) - we noticed today that the mortgage that we have agreed with NatWest now has a new lower rate (all other details the same, even the product name). A quick phone call to ask about the rate change and it turns out that as we applied directly online and not through a broker there isn’t really a mechanism for NatWest to change us to the new rate. If we were with a broker then the broker would have access to a special product code but we as members of the public don’t. The NatWest employee did but couldn’t give it to us because he’s not able to advise or act in an advisory capacity (fair enough). But it seems ludicrous that we are at a disadvantage (of a few hundred pounds a year) just because we don’t have a broker and can’t give them a special identification code for the mortgage product. Any ideas?

Brokers normally have access to deals that MOP don’t. Have they said that you would need to cancel your application and reapply, and would there be a cancellation fee? It seems frustrating but the rates change regularly so I can see why they won’t just switch you.

FWIW, we have been using a broker for years and they have been brilliant. He takes care of our remortgaging each time which gets us the best rate and saves us doing all the paperwork. We only paid the first time and he now works off the commission that the lender gives him so doesn’t need to charge clients a few.

Thanks @Allthecakes - I know that brokers usually get some special rates. But this isn’t a special rate it’s just quite literally that their standard 2 year fixed open to members of the public has changed its rate and they will only change ours if we have some special code. If we had a broker it would be easy but it’s not. We’ve used a broker in the past but he wants ££ every time we remortgage. In a way it’s NatWest’s fault we haven’t moved yet - they were so slow in the beginning and kept losing information and then not ordering the valuation that our previously no chain purchase joined a chain (we had cash buyers so it could have been quite quick).

I think I would be ok with it being just tough luck and how it works (with everyone being stuck on the old rate) but it’s not - if I get hold of the code I might be able to change the rate. The chap on the phone was lovely but he said it was because we have no broker then it would look like NatWest advised us (which they can’t apparently). Only they didn’t - we phoned them off our own backs.

Ironically I thought applying on my own would make life easier (childcare etc) - I didn’t need a broker, we saw one but the NatWest rate was better than he could do. FWIW it’s a fairly large mortgage but at

I'm a mortgage broker & in these case I usually speak to the processing team & ask for the mortgage offer to be amended to the new lower rate. I cant see why going direct should be any different. I would write or email them asking if you can have the new rate. Do you have the new product code...?? If not it should be pretty easy to find as they are usually displayed in the product features or online description of the new rate.

FWIW. Like a pp has said, most brokers get paid commission by the lenders & shoukdnt need to charge you a fee. The amount now is pretty much uniform at 0.4% of the loan amount. A product switch or transfer, where you stay with your existing lender at the end of the initial "special" rate & simply take a new deal will pay a broker 0.2%.

Thanks @hadthesnip2 - that’s what I’m trying to do, glad that it’s not that different to what you would do. And I suppose I’m naive but I didn’t realise the broker got commission - we saw the broker attached to the agent and they wanted £200 or so, yet if they have a similar arrangement to you they would have got a kickback approaching 10x that . It’s been a difficult journey, NatWest are not setup to deal with independent customers at all, this is a recurring theme. I think I probably would use a broker next time. The code isn’t that easy to find on their website but I’ll see if I can have a little bit of a google...

Sorry @myshowsarenew, I'm on holiday atm otherwise I'd fire up the laptop & source the code for you.

That’s very kind - I’m sure I will find it - I work in research and am fairly determined!

I’d head into an actual branch and get sat in front of someon. It really doesn’t sound right that you’d need to be a broker!

Actually - does this look like what I need? www.intermediary.natwest.com/content/dam/natwest_com/Intermediary/NWIS_Rates/20190719nwisnewbusiness.pdf

Our mortgage is the top row, so the code I’m looking for is on the far right??

It says for intermediaries only...

Yes, that looks like it. There is not usually any difference between what they offer the public to what us brokers get. Sometimes there are "exclusives" but 90% of the time its the same either way.

Only real difference going through a broker is that..... 1) We can source all the deals offered by all the lenders so can get you the best deal on offer. And 2) when there is a problem then we can spend our time sorting it rather than you doing it all (as this instance shows).

Wonderful, thank you

And yes it’s been a ridiculous amount of my time - at one point daily phone calls to try and get things moving. Over 3 weeks to get access to their documents system, valuation wasn’t until week 7, and we got caught up in money laundering checks but they forgot to request the documents they needed and then took a week to tell us that they needed different ones!

I’ve never paid a broker anything - they get paid by the bank!
I would ask for face to face meeting with the bank - they are providing a service, you are paying them for it. I’d say I see this new rate you are offering and I expect you to change my rate to match it. They’d be fools to loose your custom over this.

Hi @Myshoesarenew, I work in financial services - unfortunately the codes you have identified are for brokers only (as you point out it says intermediaries only). The mortgage team won’t be able to process the change to this rate as the rates are (sometimes) different for brokers compared to the public.

There are regulations regarding mortgage advice which is where some of the challenges are no doubt arising from. However, the team can make a change to your application to the new rate for public customers, it will no doubt just be a fiddly process.

Your best bet is to drop a complaint to the CEO office and they will make sure it’s investigated and actioned. No need to make it a long one, just put that your application has been delayed, rates have changed in the meantime and you want the benefit of the revised rate.

They’re under no obligation to do it (and i’m guessing that if the rate had gone up you wouldn’t be campaigning for a rate increase, nor would the bank charge you the higher rate). However, your best chance of success is a complaint.

Hi @Longhairdonotcare thanks for weighing in. I get that brokers sometimes have different deals and it would be very unreasonable of me to expect that going solo, this isn’t the case though. It’s just a standard product on their website. And it’s not even that the team are saying that I’m not eligible per se, it’s that they have no way of processing the request without the code. You’re right about not wanting to pay a higher rate, but it seems that it’s fairly standard for brokers to request the lower rate, at least that’s what the team seemed to think.

I think my complaint is actually that the team are just not very well equipped to deal with customers applying independently. This isn’t the first time that people have been confused as to what to do for me when I don’t have a broker. FWIW the decision to go alone was partly that the broker we did see couldn’t get a deal quite as good (or didn’t show us one) and he wanted a fee from us, and partly just me thinking it might be quicker (applied during my lunch break which was easier than finding time for an appointment). But if they/their systems can’t deal with members of the public then maybe they shouldn’t have let me apply without a broker. I’m actually saving them money as there is no brokers fee to pay!