Nationwides mortgage shake up not a complete U-turn says, L&C

While Nationwide’s shake up of its mortgage range is not technically a U-turn, it remains to be seen whether existing customers see it in the spirit of the society’s ‘same deal for all’ policy, says London & Country.

James Cotton, mortgage specialist at L&C, says: Technically speaking, this is not a departure from Nationwides stance of offering a level playing field to new and existing customers rather it is differentiating between rates offered for home buying and remortgaging.

“However it remains to be seen whether existing customers will feel this move is in the spirit of Nationwides same deal for all policy.

“The main change will be the introduction of different rates for purchases and remortgages.

“Deals available to remortgage borrowers will have slightly higher rates than purchase deals, however the remortgage administration fee (currently 99) is being removed.

“This may appear to be a shift away from Nationwides pledge to offer the same rates to everyone, but the reality is that people who are buying a new home will have access to the same rates regardless of whether they are new or existing customers.

“The same is true for those remortgaging from another lender or Nationwide borrowers switching to a new deal. Nationwide has also introduced a 100 loyalty discount for existing borrowers in the form of a lower reservation fee.

“This is a welcome move, although those opting for a no-fee deal will obviously miss out on any discount.”