The lender has revamped its previous challenge launched in June and it is open to all borrowers coming to the end of a deal or remortgaging from their lender’s SVR.
Nationwide said if it is unable to match or lower new monthly mortgage payments from either Halifax, Abbey, Cheltenham & Gloucester, Woolwich, HSBC, NatWest or Northern Rock with either a better fixed or tracker rate, it will pay the customer £150.
Borrowers with other lenders who partake in the challenge receive £100. It comes after Abbey and John Charcol both released research urging consumers on SVRs to remortgage.
Nationwide executive director Stuart Bernau said: “In a mortgage price war the winners are those who look for a competitive rate with low fees and charges, and a lender who treats them fairly at the end of the deal. With Nationwide you don’t have to sacrifice one for the other.
“The losers are the borrowers who continue to pay over the odds by remaining with uncompetitive SVRs. We’re confident our mortgage challenge will lead many people to look at their mortgage and do something about it.”
Rod Murdison, proprietor of Murdison & Browning, commented: “I don’t blame lenders for trying every means to reach these borrowers who are throwing money away. It’s also got to be one of the most ethical sales anyone can do – the size of the debt hasn’t increased, you’ve merely saved someone a lot of money in unnecessary payments.”
He added: “If, as I suspect, clients cannot get the ‘reward’ if introduced by a broker then it could be a good way to make loyal clients £150 better off for the sake of filling in some paperwork.”
