Track and Switch Mortgages

A Tracker mortgage is a product with a variable rate that tracks the National Westminster Bank Plc base rate. This means that the customers mortgage rate and amount they pay for their mortgage on a monthly basis can change. An increase could see the rate your customer pays increase too.  Likewise, if the rate goes down, the rate your customer pays should follow

The Bank of England is the central bank of the United Kingdom and their job is to ensure a stable and strong economy. They set their own base rate which in turn influences the rate lenders are able to offer for products like mortgages. Changes in the Bank of England Base Rate are one of the main reasons we change our National Westminster Bank Plc Base Rate, but it is not the only reason. We have full control over our own base rate and this could go up or down regardless of what happens to the Bank of England base rate

Track and Switch is a facility that allows a customer to take a Tracker mortgage now and switch onto a Fixed Rate mortgage later.  The customer can switch onto any Fixed mortgage after the tracker mortgage has drawn down.  The customer can switch onto any of our Fixed Rate range providing it is the correct LTV, term etc.  They will not be re credit checked or scored. This works like a Product Transfer. 

All Tracker products may be switched to any NatWest fixed rate product, subject to meeting the new product criteria and availability at the time of application and without incurring the Early Repayment Charge. The product switch is subject to any fee(s) applicable to the new product at that time. The new Fixed rate product may also have an Early Repayment Charge.  

Providing the customer has drawn down on their tracker mortgage, when the customer wants to switch on to a Fixed Rate product, this works like a Product Transfer.  Terms apply.  There is no additional credit scoring or underwriting.  The customer can choose any product providing they meet the criteria for the product i.e. LTV, remaining term etc.  

It is for customers who want to take advantage of a Tracker mortgage now but may want to fix their mortgage rate later.   It is for those customers who are comfortable with a variable rate and payment which can change monthly.

Our latest product rates can be found here.

The customer needs to be drawn down on the tracker product before they can switch into a Fixed Rate mortgage.

Yes, they can do this once the tracker mortgage has drawn down.  This will be subject to new product criteria and product availability at time of application.  

Once your customer has drawn down onto their Tracker mortgage you will be able to switch them via our Product Transfer system. 

If the customer is a new customer to NatWest when you recommend a Tracker mortgage you will be paid your standard procuration fee.  If your customer chooses to switch to a Fixed Rate mortgage you’ll be paid for doing a product transfer.  Please check your own or your network and clubs’ terms for the latest procuration fees.  

If the customer is doing a Product Transfer with NatWest and you recommend a Tracker mortgage, you will be paid your Product Transfer procuration fee.  If your customer then chooses to switch to a Fixed Rate mortgage you’ll be paid a Product Transfer procuration fee. Please check your own or your network and clubs’ terms for the latest procuration fees.

All Tracker products may be switched to any NatWest fixed rate product, subject to meeting the new product criteria and availability at the time of application and without incurring the Early Repayment Charge.

A customer can switch to a fixed deal without incurring an Early Repayment Charge while porting.

• The ‘Are you porting an existing NatWest product’ question should be answered as "No" as a new product will be selected.
• Our New Business fixed rate products should be used.

Note: Where another sub-account is already on a fixed rate and this is to be ported, then key as a porting case, as normal.

Yes, this can be done as long as the mortgage has been live for a minimum of 6 months.