"It raises questions about the fairness of our offerings to clients, as rates differ depending on whether they engage directly or through an intermediary."
Brokers have criticised NatWest for allegedly offering a sub-5% 60% LTV five-year fixed mortgage rate direct to consumers — available online on an execution-only basis — that isn't available via brokers.
They added that dual pricing may be “incompatible with our commitment to Consumer Duty”, stating that there is a 15 basis point difference between the direct deal being offered by NatWest online and the cheapest brokers have to offer at 5.14%, excluding green mortgages.
Brokers shared their views via Newspage.
Riz Malik, director of R3 Mortgages: “Is NatWest really rewarding people for not taking advice in this day and age? Considering that this is a time when people need advice the most, I find this tactic short-sighted. It's not in the interest of consumers nor in the spirit of Consumer Duty."
Ranald Mitchell, director of Charwin Private Clients: “This is a disgusting practice that NatWest have been guilty of in the past. They are not alone. They send their representatives around our businesses with the message, 'We value brokers', and then continue to undermine the crucial service brokers offer with cheaper rates directly.”
Graham Cox, founder of the Self Employed Mortgage Hub: “Dual-pricing should be banned. It's unethical not just for brokers but consumers as well, who should reasonably be able to expect the rates a broker sources to be the best available in the market. Just another example of banks acting with impunity. It's high time the regulator bared its teeth.”
Lewis Shaw, founder of Shaw Financial Services: “The FCA wants consumers to receive advice when taking out a massive amount of debt linked to their most valuable asset for over 25 years. So how does this fit with Consumer Duty and preventing foreseeable harm when many consumers are unaware of the implications and most won't truly understand the protections they're giving up when selecting an execution-only product?”
Darryl Dhoffer, founder of The Mortgage Expert: “So the dark art of dual pricing is once again raising its head. I appreciate lenders have loan books to fill, but these practices are not acceptable. Lenders need to remember that nearly 90% of all mortgage business written is by intermediaries, in case they need reminding.”
Steven Morris, director at Advantage Financial Solutions: “This is awkward as, of all lenders, we have perhaps the best relationship with our NatWest BDM. But yes, this is a phenomenally short-sighted tactic that arrogantly sticks up two fingers to the relationship with brokers. Sorry, NatWest, but who provided you all that business during the recent market boom? Around 75% of it, if I have my numbers right? Ah yes, us brokers. Dingbats.”
Adam Smith, founder at Alfa Mortgages, pointed out that dual pricing creates a Consumer Duty issue for brokers: “The concept of dual pricing appears incompatible with our commitment to Consumer Duty. It raises questions about the fairness of our offerings to clients, as rates differ depending on whether they engage directly or through an intermediary. This practice may inadvertently disadvantage financially inexperienced clients who choose the execution-only route, potentially exposing them to unnecessary risks.”
Financial Reporter has contacted NatWest for comment.
