MoneyExpert: NatWest’s fee-free re-mortgage step-down tracker

Sean Gardner, Director, MoneyExpert.com, said: "With higher mortgage fees very much in the spotlight this new offer from NatWest is certainly eye-catching.

"When some other providers are charging arrangement fees approaching £1,500 the offer of re-mortgaging fee-free is very attractive. The early redemption charge of 3% might be a sticking point but plenty of other providers charge as high as 4% or 5%.

"Clearly one of the major features is the annual reduction in the rate. Starting at 6.89% (base rate plus 1.89%) the rate drops to 5.99% (base rate plus 0.99%). This may sound tempting, but borrowers should be aware that the average tracker rate is currently 5.9%, so even after three years you'll still be paying more than most.

"Overall the fee-free offer is certainly a move in the right direction, but borrowers need to consider the total cost of the mortgage and not just the short-term savings available."