Nationwide Building Society is reducing selected rates on its Loyalty Rate Mortgages initiative from today.
Under the initiative, Nationwide compares its mortgage rates for existing customers to those of its top six high street competitors, and offers them a better deal.
Loyalty Rate Mortgage changes:
Five-year fixed rate to 75% LTV with a £999 fee reduced by 0.10% to 2.84%.
Five-year fixed rate to 75% LTV with no fee reduced by 0.10% to 3.04%.
Existing mortgage customers already benefit from an additional 0.10% discount on new customer rates.
Loyalty Rate Mortgages are only available to Nationwide's existing mortgage customers who are looking to switch to a new deal.
Nationwide offers a core range of competitive rates for all mortgage applicants, as well as a £500 discount on mortgage fees for first-time buyers.
Under the scheme, Nationwide compares like-for-like products against the comparable LTV tier and fee range of its top six competitors, currently NatWest/ RBS, Halifax, Santander, HSBC, Barclays/Woolwich and Lloyds.
Mortgages must have the same product term and comparable arrangement, product, booking or application fee.
Competitor products must be available to all customers through lenders' retail channels and will exclude deals through subsidiaries, intermediary exclusives, buy-to-let mortgages, Help to Buy and those with fees greater than £1,000.
If a competitor's mortgage deal is lower than the Nationwide equivalent, that product will be re-priced the following Wednesday to be lower by at least 0.01%.
This process will be repeated each week.
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