Mortgage price promise "empty" by Natwest

26/04/2007

Homeowners who are offered £1000 to beat their existing home loan is unattainable according to an expert.

In conjunction with the Royal Bank of Scotland, Natwest is offering mortgage customers of Abbey, Halifax, Woolwich and Lloyds TSB £1000 cash bonus if it is unable to beat their current home loan.

Mortgages must be for at least £50,000 with loan-to-value of 75% or less.

Julia Harris, mortgage analyst commented, "somewhat of an empty promise" as the mortgage that NatWest uses for comparison is unbeatable, based on the monthly repayments of the deals from the four lenders it aims to trump.

She added, "While it is great news to see NatWest encouraging borrowers to remortgage to a better deal, the £1,000 mortgage challenge is little more than a marketing ploy to entice borrowers through the door."

The complete mortgage package should be considered by people who decide to switch, they should take account of the fees, rates, and flexibility Harris stated.

A spokeswoman at NatWest stated that, mortgage deals had been introduced to offer a competitive deal "to those who invariably will be spinning off on to risen rates or who are offered uncompetitive rates and don't feel that they have the chance to do something or have no idea what so ever.

Julia Harris spoke further: "If, as a result of our activity, other lenders revise their mortgage deals and offer their customers a better deal than is currently on offer, we'll be pleased to have been a catalyst for a change in their policy."

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