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Nationwide reneges on equal mortgage rates for new and existing customers

28 November 2006
Nationwide building society has been accused of abandoning the pledge to give existing customers the same deals as new customers – a commitment central to much of its publicity.

Existing customers who want to remortgage will have to pay between 0.1 per cent to 0.25 per cent over the rates charged to new customers buying a home from December, in a change that critics say favours first-time buyers and home movers.

Critics charge Nationwide with betraying customers who chose a Nationwide mortgage on the expectation that the promise of equal rates for new and existing customers would hold.

Nationwide spokeswoman Zoe Stevens, speaking to the Guardian, defended the move: "We still believe new and existing customers in the same circumstances should have access to the same deals and this will be the case."

Melanie Bien at broker Savills Mortgage Finance told the paper the repricing was "very surprising", although still competitive.

Nationwide is the UK's third-largest mortgage lender, after HBOS and Abbey.

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