Nationwide says it will continue running its “new customers only” ads despite ending its policy of offering the same deals to new and existing borrowers.
It is changing its range from December 1 so rates on remortgaging, deal switching and further advances are higher than those for home purchase a move which was first revealed on Money Marketing Online on Monday morning,
New and existing customers in the same position, such as buying a house, will get the same deals but the principle no longer applies across the firm’s entire book. It means a first-time buyer, for example, will get a better rate than an existing client remortgaging but existing customers will get a 100 discount on a reservation fee for a new mortgage.
A spokesman says: “The ads will stay. Our fair approach to existing customers remains, as new and existing customers in the same circumstances, such as buying a house, will be offered the same rates.
“We are rewarding loyalty through discounted reservation fees to existing customers, who will not be disadvantaged by a 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.”