NatWest has launched a sub-4% mortgage deal that is only available to direct customers in a move that has frustrated brokers.

It is offering an online-only five-year fixed rate at 3.97% up to 60% LTV with a £1,495 fee.

The equivalent deal via NatWest for Intermediaries is 6 basis points higher at 4.03% with the same fee.

Moneyfacts has confirmed the NatWest direct-only deal is one of only two available on the market at the moment – the other is from Nationwide.

Private Finance technical director and senior mortgage consultant Chris Sykes says: “If lenders start dual pricing deals direct vs brokers it becomes more complex for borrowers.

“All channels should have the same pricing.

“It is probably Natwest just wanting to stir publicity their way, even though this product will not be right for 95% of borrowers.

“Just because Natwest are cheaper with one very specific product, it doesn’t mean they will be for other situations and it is important to seek proper advice on the best avenues.”

John Charcol mortgage technical manager Nicholas Mendes says: “It’s disappointing to see a lender offer a product exclusively for direct clients, especially given the significant volume of business that flows through intermediaries.

“This approach seems short-sighted and overlooks the value and trust intermediaries bring to the lending process. 

“It’s crucial to ensure fair and equal opportunities for all clients, regardless of their approach.”

Moneyfacts personal finance expert Rachel Springall adds: “There is still lots of room for fixed mortgage rates to come down, not just in response to the recent base rate cut, but also as lenders catch up to a falling swap rate market.

“A low-rate mortgage may well grab the headlines, but its vital borrowers pick a deal based on the overall true cost of the mortgage.

“An independent broker can help borrowers assess which deal is the most suitable for them, considering the initial rate, fees, and any incentives.”