Nationwide direct product under fire

Nationwide is the latest high street lender to come under fire for allegedly undercutting brokers.

Peter Stokes, director of brokerage Davidson Deem, says the lender is providing a more attractive tracker deal direct than the one it offers via brokers.

He says its exclusive three-year tracker at 0.74% above the base rate, available only to online customers and through its branches, is an example.

Stokes says inferior deals that are 1.15% above the base rate for two years or 1.34% above the base rate for life are available via brokers.

He adds: “Nationwide is another lender that is happy to undercut products available to brokers by offering better ones in branch.”

Peter Leydon, director of intermediaries at Nationwide, says: “A number of lenders are offering competitive branch deals so to bring our range in line with the rest of the market we have introduced a three-year product that is not directly comparable with the wide range of deals available via brokers.”