The fact is that customers who are homebuyers as opposed to remortgagers will now get a better deal although the building society argues that the same classes of borrower are treated the same. The move was always going to be a risky one for a lender that had based so much of its stance on equal treatment.
Maybe Nationwide felt it could use different rates as a lever to get more of the sort of business it wanted but it should have thought hard about that fact that many of its customers will believe they have been sold a promise that has not been kept.
Its policy and its advertising was simple and it caught people’s attention and helped it pour scorn on competitors who chased new business to the detriment of their existing customers. But what on earth are these customers going to think of Nationwide now? If it can, may we suggest that Nationwide U-turns back to where it was a week ago and, if not, surely it cannot use that advertising campaign again.