Nationwide has ended its policy of offering exactly the same deals to new and existing customers.
In communications sent to brokers this morning, the lender, famous for its ‘new customers only’ ads, reveals it is changing its range from December 1 so offers on remortgaging, deal-switching and further advances are more expensive than those for house purchase.
New and existing customers in the same position, such as buying a house, will still get the same deals but the principle no longer applies across the lender’s entire book.
It means a first-time buyer, for example, will get a better rate than an existing client remortgaging. However, existing customers will be given a £100-discount on a reservation fee for a new mortgage.
A Nationwide spokeswoman says: “Our fair approach to existing mortgage customers remains, as new and existing mortgage customers in the same circumstances, such as buying a house, will be offered the same great rates that we are renowned for.
“In fact, we’re now actively rewarding loyalty through discounted reservation fees to existing mortgage customers. Existing mortgage customers will not be disadvantaged by a product range which is available to ‘brand new customers only’.”
The Mortgage Practitioner sole trader Danny Lovey says: “This destroys the argument that Nationwide does the same for new and existing customers, but they are not bad deals. It is not adviser-friendly and this is a missed opportunity.”