Moneysupermarket.com has slammed Nationwide’s backtrack on its mortgage policies as a sign that “loyalty will get you nowhere”.
Louise Cuming, head of mortgages at moneysupermarket.com, says: “The society has taken an interesting slant on mortgage lending and divided customers into two categories, those buying or moving home, and those remortgaging, switching their deal, or taking out additional borrowing.
“The former will have access to more competitive Nationwide products.
Justification comes in the form of new and existing customers in the same circumstances will have access to the same rates. It will be interesting to see if the organisation still tries to get away with its famed brand new customers only slogan.
In our experience people want to benefit from the very best deal available, especially if they have been loyal to a particular lender for a certain period of time. Now there are zero points for loyalty, just a 100 discount on the reservation fee when switching for one product to another.
She adds: Admittedly, to date, Nationwide held its own in the new and existing customers game, standing out from other lenders which penalised one or other. But I fear it has really lost its moral high ground on this one. After shouting loudly about its unique mortgage policies, it has shot itself in the foot with this action and I imagine it will only serve to reduce it faithful customer base.