The lender has reduced the number of LTV bands from three to two on all fixed rate and tracker products. New borrowers with an LTV of between 75% and 90% will now pay the same rate as borrowers in the 0% to 75% LTV band.
Mike Fitzgerald, sales director at Brentchase Financial Services, says: “Nationwide's products are at the top of the sourcing system searches at the moment. But lenders must make sure that good deals are matched by good service levels.”
Daniel Lovey, a sole trader at Basildon-based The Mortgage Practitioner, says: “I have noticed that service has started to suffer. Some cases are three weeks behind and I have had real trouble getting through to the call centre to track cases.”
Steve Blore, senior manager at Nationwide, says: “The simplification of our LTV bands has made our products even more competitive. We are very busy at the moment and service levels have occasionally been below normal in some areas. Broker business is important to us and we will resolve any problems as quickly as possible.”
Last week marked 100 days since the publication of the Miles report. Nationwide has called on the mortgage lending industry to follow the report's recommendation that lenders make their full range of products available to all borrowers and says failure to act is costing consumers around £1bn a year.