NatWest has confirmed it will use its “best endeavours” for a 24-hour period on rate withdrawals.
They will reserve the right to pull rates quickly if significant market activity makes it essential, as all lenders would need to do anyway, but adopting this model is a real win for brokers and borrowers.
A NatWest spokesperson said: “It’s always been our ambition to support the market with as much notice as possible before making a rate change.
“We have listened to our broker partners and we’ll continue to do this as well as looking at further ways that we can support them.”
Newspage asked brokers for their thoughts on this announcement, and whether other lenders should also adopt a similar model.
Reaction:
Riz Malik, director at R3 Mortgages:
“This is brilliant news. Well done to NatWest for listening to a topic close to our hearts.
“Borrowers are the winners here and we hope other lenders will see the light and join the movement.
“We appreciate markets can be volatile but if we work together and communicate then anything is possible.
“Thank you to everyone who continues to support the campaign, including Newspage for giving us the platform to have a voice.”
Stephen Perkins, managing director at Yellow Brick Mortgages:
“Finally some common sense and respect for brokers and borrowers from another mainstream lender.
“Hopefully more will follow. Yesterday, for example, Skipton announced withdrawal of rates at 10pm last night at 3.30pm so again brokers will have been working late for their clients.”
Andrew Montlake, managing director at Coreco:
“This is a very welcome move by a top lender that shows that they are listening to and supporting brokers.
“I expect similar movements from other lenders after this.
“Looking after the industry and those within it, as well as doing what is right for our clients, is a collective responsibility and we understand that sometimes statements such as these are not as easy to make as some people think.
“Well done to NatWest and this is a big step in helping to alleviate pressure on brokers and clients alike.”
James Vince, managing director at Castle View Finance:
“This is great news release from a high-street lender.
“This enables intermediaries to process, chase clients and action applications in what has been a volatile period.
“Not only are the borrowers stressed with cost-of-living pressures, having time to gather thoughts on broker recommendations is vitally important.”
Gary Bush, financial adviser at MortgageShop.com:
“It’s good to see NatWest responding to the calls from brokers for a minimum notice period from lenders before removing mortgage rates.
“Although, ideally, a 48 working hours warning should be implemented by lenders, to avoid undue stress on mortgage applicants and their advisers, this announcement from NatWest is far better than they have demonstrated of late with usually three working hours’ warning before rate removals.
“The sticky small print from lenders at the moment that release these new warning periods is that “best endeavours” will be made to comply with these, it’s not exactly a guarantee, which is unfortunate.
“It’s clear that lenders seem to be hearing the advice community cautioning that such inadequate notice periods will not pass muster with the financial regulator, FCA, and new Consumer Duty rules.
“We await more lenders seeing sense soon hopefully.”
Katy Eatenton, mortgage and protection specialist at Lifetime Wealth Management:
“Amazing news. When the markets are so volatile, giving little to no notice of rate withdrawals is brutal, for both the borrower and the broker.
“I personally have missed out on too much time with my children keying applications out of office hours so as not to miss rates.
“It also isn’t fair rushing borrowers into making such massive decisions so quickly.”
Lewis Shaw, owner and mortgage expert at Shaw Financial Services:
“Hopefully, this is the thin end of the wedge, and other lenders fall in line.
“Thank the lord for Riz Malik, Jaime Lennox and the 24-hour pledge.”
Jack Tutton, director at SJ Mortgages:
“A step in the right direction from a high street lender and long overdue.
“I am pleased that NatWest have agreed to this, it wasn’t too long ago that they pulled their products on a Sunday causing a lot of issues for mortgage brokers.
“My hope is that more lenders can follow NatWest and commit to the 24-hour pledge.”
Ben Perks, managing director at Orchard Financial Advisers:
“A small step for NatWest, a giant leap for Consumer Duty practices.
“It’s refreshing to see a major lender taking note of the industry noise and putting in place procedures that will help borrowers greatly by giving them a 24-hour period which will help them to make more informed and less rushed decisions.
“It also eases the burden on brokers. Let’s hope more lenders follow suit, and quickly.”
Hannah Bashford, director at Model Financial Solutions;
“This is brilliant news and will help to make sure borrowers are not rushed to make decisions or lose out on competitive rates.
“We’ve seen a few lenders starting to adopt this way of working and I am very grateful to those lenders who have listened to the challenges short withdrawals cause and who have begun to remodel their notice periods.
“This gives us and our clients a fighting chance of getting the best deal without inducing unnecessary stress and lost family time for us.”
Rohit Kohli, director at The Mortgage Stop commented:
“This is very welcome news and well-done NatWest for making this announcement.
“They’ve thrown down the gauntlet to the other big names now to follow their example.
“A big thank you must go to The Broker Collective for giving this a platform. Thank you and well done.”
Amit Patel, adviser at Trinity Finance:
“A hugely commendable announcement by NatWest in agreeing to give brokers a 24-hour notice pledge on rate withdrawals, although they will reserve the right to pull rates quickly if significant market activity makes it essential.
“We now need more lenders to sign up to the 24-hour pledge, namely Lloyds Banking Group, Santander, HSBC, Nationwide and Barclays.”
Akhil Mair, director at Our Mortgage Broker:
“The move by NatWest is a positive step forward. This change not only provides more transparency but also offers brokers and clients the opportunity to plan ahead effectively.
“It’s encouraging to see initiatives like this supported by The Broker Collective that aim to bring stability to broker work patterns.
“This decision reflects a commitment to better serve the needs of both brokers and clients, which is truly commendable. Who will follow in NatWest’s footsteps?”
Ken James, director at Contractor Mortgage Services:
“This is very welcome news. Yes, it’s the tip of the iceberg but like a lot of these decisions once one big lender commits others often follow.
“The mental stress lenders have placed brokers under has been largely ignored by lenders for too long. We need as much time as possible to allow us to speak to clients and gather any remaining docs to submit an application.
“This is typically impossible with current practices of rate withdrawals from most lenders.
“The sooner we have a 24 to 48-hour window of notice of rate changes across the board, the better.”
