If a customer has paid the product fee (typically £995) up front, this will be refunded after the £150 withdrawal fee payment has been deducted. The fee will be payable on all residential and buy-to-let purchase and remortgage applications.

No withdrawal fee will be payable if a customer decides not to proceed with an application pre-offer or if NatWest declines the application after offer, said the lender.

Sarah Taylor, service development manager, NatWest Intermediary Solutions said:

“This is a positive move to reflect the fast-moving circumstances borrowers can find themselves in.

“We believe that this new standard fee will be welcomed as a fair and transparent one.”