The mutual, which has for many years attempted to differentiate itself from the plc providers in the mortgage sector, is now looking to bring many of its fees and charges in line with the banks.

Mortgage borrowers who opt to rent out their property for three years or more, will see the interest rate on their loan jump by 1.5%, the equivalent of an extra £190 a month to the cost of repayments on a £150,000 interest-only home loan. Members will also be charged a new £75 fee when notifying the lender of their intention to let out their home.

Borrowers will also be charged a £50 administration fee if they choose to switch from a repayment-type to an interest-only mortgage, and a £20 fee for extending the mortgage term.

Borrowers falling behind on their payments will also be charged a bit more, with fees for default notices, a home visit from a Nationwide member of staff and referrals to solicitors also rising.

A spokesman for Nationwide said: “We feel that it is fair that costs and fees should be borne by those customers who make use of these services rather than all costs being borne by all customers.

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“These charges are very conservative and at the lower end of the market.”