Nationwide will do a U-turn on its pledge not to reintroduce discount
mortgages if rivals such as Abbey National and Halifax refuse to change
their pricing policies.
The shock admission comes after months of plummeting sales for the UK's
biggest building society following its decision in February to drop
Nationwide has previously dismissed suggestions by IFAs it would have to
revise its pricing policy within six months.
The society now admits if Abbey and Halifax do not drop short-term cheap
deals, it will be forced to go back to the old pricing system – including
Abbey, which claims Nationwide has “misunderstood the market”, says it has
no intention of doing so, while Halifax says it has “no plans at all” to
A Nationwide spokesman says: “The whole situation cannot continue if banks
like Abbey and Halifax continue to offer cut-price deals. In the long term,
it is true we would have to go back to the old pricing system.”