New Nationwide mortgage offer - preferential rates for loyal customers.
To reward its existing customers, Nationwide is offering preferential mortgage rates.
Loyal customers are to be rewarded in an effort to keep existing mortgage-holders from switching to a cheap remortgage deal with another lender.
Nationwide advise a reduced mortgage rate will be offered to customers who either move house, increase their borrowing or change deals.
Nationwide mortgage discounts were previously only offered to customers at the lender's discretion. Under its new scheme all existing mortgage customers are to be automatically offered lower rates when they adjust their current deal.
A Nationwide mortgage spokesperson commented saying that through its new preferential mortgage rates the lender is letting customers know that their loyalty will be rewarded.
Existing customers therefore have access to lower rates than new customers which is relatively usual. Usually lenders offer their lowest rates to new customers to attract business.
Nationwide it seems are less concerned about developing new business preferring instead to retain the old. This could therefore be about managing mortgage levels.
Nationwide loyalty mortgage rates include a 4 year fix for 70% loan to value at 2.99%, new customers have access to a similar deal but the rate they will be offered is 3.09%.
A 2 year loyalty rate is also available for 70% loan to value at 3.39%, new customers will pay 3.39% and a 5 year fix is available at 3.59% with new customers paying 3.69%.
If you are looking for a cheap mortgage offer contact Deal Direct.
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