The lender announced a total overhaul of its range, and while new and existing mortgage customers in the same circumstances will have access to the same rates, Nationwide stated that ‘in general’ rates for purchase will be lower than remortgaging to Nationwide, switching deals or additional borrowing.
Rob Procter, deputy chief executive of Kent Reliance, described the decision as an ‘astonishing u-turn’ and claimed Nationwide’s policy decision- making was in disarray. “I don’t see how it can justify it under ‘Treating Customers Fairly’. I don’t think it knows what it is doing, especially as it has spent millions on a massive marketing campaign to say it isn’t a big, bad lender. This goes against everything it has preached for five years.”
Nationwide removed its remortgage admin fee and will give existing customers a £100 discount on their reservation fee, but Procter said this was merely ‘an attempt to deflect criticism’.
Louise Cuming, head of mortgages at moneysupermarket.com, also expressed disappointment and surprise that Nationwide had switched from treating all customers the same. “It doesn’t pay to be a loyal customer anymore. This shows that, to remain competitive, lenders need products to be attractive to new customers, but can’t afford to do it across the board.”
Yet, James Cotton, mortgage specialist at London & Country, commented: “The reality is people buying a new home will have access to the same rates regardless of whether they are new or existing customers. The same is true for those remortgaging from another lender or Nationwide borrowers switching deals. However, it remains to be seen whether existing customers will feel this move is in the spirit of Nationwide’s ‘same deal for all’ policy.”
Jennifer Williams, spokeswoman for Nationwide, denied it had many any kind of u-turn. “The changes are very much within our strategy. This does not go against mutuality.”
