Great Britain’s largest building society Nationwide has introduced a new home loan system whereby new customers will be charged a significantly higher interest rate than existing clients.
The two-tier system reflects an ongoing tightening of lenders’ policies and conservation of funds in response to the credit crunch.
Under the changes implemented last week, Nationwide will have two standard variable rates – 2.50 per cent for existing customers and 3.99 per cent for new customers, according to The Guardian.
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Over the course of a year on a £100,000 mortgage ($204,000), this would cost new customers almost £1,500 (A$3,000) more in interest.
According to The Guardian Nationwide has been accused of “penalising” new customers.
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