April 29th, 2009 
admin 
Mortgage lender Nationwide has scrapped a rate promise by making new customers pay significantly higher interest rates than existing customers, when their introductory deal ends. From here on in, Nationwide will offer a two-tier mortgage system with different prices, effectively providing two standard variable rates .
In the past, Nationwide have campaigned against two-tier arrangements, insisting that lenders should treat new and existing customers fairly. Two-tier mortgage rates have been extremely controversial in the past, and have faced Financial Ombudsman rulings.
The mortgage director of Nationwide, Andy McQueen, reportedly claimed that the mortgage market : “has experienced principal changes due to the prevailing economic and market conditions. We are currently in a very low interest rate environment, which can be challenging at what time balancing the needs of both our savers and our borrowers . The new SMR will provide us with more pricing flexibility, matter which is essential in helping us to exhibit our savers more attractive products in the future.”
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Tags: Mortgage Lender, Promise, Rate Promise