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Nationwide launches price promise for existing customers

Nationwide has launched a price promise to make sure existing borrowers stay with the society.

From today, Nationwide will compare its mortgage rates for existing residential mortgage customers looking for a new deal against the remortgage rates of its top six high street competitors – NatWest/RBS, Halifax, Santander, HSBC and Lloyds.

Every Friday the society will shop around for its mortgage customers. If any of the competitors has comparable remortgage rates that are lower than its own, Nationwide will lower its rates the following Wednesday.

The scheme is only available to existing remortgage customers who are looking to switch deal.

Nationwide divisional director of mortgages and savings Richard Napier says: “Following our recent extensive reductions across our mortgage range, Nationwide’s mortgage deals for existing customers are already extremely competitive. With loyalty rate mortgages, we are taking that a step further. 

”We are constantly reviewing the market so that our existing mortgage customers can be confident our rates compare favourably against those of our competitors. We are doing the work for them by checking the rates of the top six lenders to make sure that we offer the best rates.”

London & Country director Pat Bunton says the offer shows lenders are not using the transitional arrangements that were written into the Mortgage Market Review.

The transitional rules allow lenders to waive affordability checks and interest-only rules for borrowers who may be trapped under the new rules as long as the customer does not wish to borrow more money or there is no “material impact” on affordability. They apply to borrowers staying with their current lender and those who want to switch to a new lender.

Bunton says: “What this is highlighting is that lenders are going out of their way to look after their existing customers but every step they make to do that exposes the flaw that they are not doing the same for new customers.”

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  • SOX 18th September 2014 at 7:42 pm

    Right and will Nationwide discuss with the clients their plans over the next few years and whether 2, 3 or even 5 year deals are ‘best advice’ for them?, will they point out that should the client wish to move they will be completely re-assessed, and should their ‘criteria’ have changed they might be refused the porting option? Will they carry our a review to see if marriage, children, job change are a possibility, and then won’t this constitute advice? or are we back to execution only again, otherwise translated as ‘not our problem’ another great idea in principle, but these gimmicks are never thought up for the actual benefit of the client just as marketing schemes to lure in the uneducated consumer who doesn’t really understand the way it works in reality.

  • William Reid 18th September 2014 at 1:57 pm

    If the alleged proc free price war is coming, John Tidswell, maybe that’ll come! Not holding my breath though!

  • John Tidswell 18th September 2014 at 1:41 pm

    The next step is for them to allow brokers to process product transfers.