Nationwide today set a date for shifting over customers from Standard Variable Rate (SVR) to Base Mo...
Nationwide today set a date for shifting over customers from Standard Variable Rate (SVR) to Base Mortage Rate (BMR) mortgages following the recent loss in a case brought before the Financial Ombudsman Service.
The service had ruled in separate cases that Nationwide and Halifax were discriminating against long-term mortgage customers by keeping their mortgage rates artificially high.
On 1 April all Nationwide customers not already shifted over to the BMR will be, joining more than half a million borrowers already moved over.
Nationwide is also reimbursing customers whose mortgage interest rates were tied to the SVR for all or part of the time between 1 March 2001 to 31 March 2002.
The difference between the SVR and the BMR is 0.5%, which could mean a significant reduction in monthly mortgage payments for borrowers.
Following the change on 1 April, Nationwide claims it will be the only mortgage lender in the UK to move all its customers to the lower rate, to charge interest on a daily basis, to make all of its mortgage products available to new and existing customers, and to provide a range of products that are CAT standard marked.
Nationwide chief executive Philip Williamson says the change of heart is all part of bringing "fairness"into the company's dealings with its customers.
The company also put out figures claiming that its "SVR/BMR" rate is the lowest of all top 10 UK mortgage lenders, with a 4.74% rate, compared to 5.75% for HBOS, 5.85% for Northern Rock, 5.95% for Lloyds TSB, Woolwich, NatWest, Alliance & Leicester, Bradford & Bingley, and Bristol & West, and 6.10% for Abbey National.
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