Its new five-year fix is at 60% LTV with a £1,499 fee.

NatWest’s launch of a sub-4% deal that is 6 basis points cheaper for direct customers than its best intermediary rate has caused frustration for brokers who do not want to see a resurgence of dual pricing.

The move has been labelled “disappointing” and “short-sighted”, by some advisers.

NatWest’s direct-only deal, which is 3.97% with a £1,495 fee, compared to 4.o3% with the same fee for its equivalent broker deal.

Nationwide’s deal is at 3.99% with a £1,499 fee, also fixed for five years but unlike NatWest’s it is available through brokers as well as direct. 

As well as the new 3.92% rate, HSBC is offering a lower fee alternative which still comes in lower than the other two sub-4% deals.

It is offering a 3.95% five-year fix with a £999 fee, also at 60% LTV.

The new launches will fuel broker hopes of price war among lenders to get their rates to the top of the best buy tables.

Trinity Financial product and communications director Aaron Strutt says: “It is good news for borrowers that lenders are lowering their rates and five-year fixes in particular are looking so much better value for money. 

“Banks and building societies are still fighting it out for business but the cheapest deals really are limited to borrowers with the biggest deposits. “NatWest launched a 3.97% five-year fix a few days ago and HSBC has already acted to undercut the deal with some great deals available to brokers and customers applying directly.

“HSBC’s two-year fix is also pretty decent at 4.41%.

“Lots of borrowers think rates will come down over the near term and don’t want to lock into a five-year fix. 

“The split between the number of people taking two or five year fixes is pretty even.

“The good thing about HSBC’s rates is that they are available to borrowers looking for different loan sizes, ranging from smaller mortgages all the way up to £5 million for those buying prime properties.”

Reflecting on NatWest’s move to offer a cheaper deal to direct customers, 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.”

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.”