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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.
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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.
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.
