Intermediaries say they are losing clients to the high street giant because it is one of the only lenders offering mortgages to borrowers with a small deposit, but only through its branch network.
They are calling on the lender to end the dual pricing practice and help them to support their clients during the pandemic.
Mortgage broker Rachel Dixon of RH Dixon met with clients at the end of May, researched the best mortgage for their needs and completed an agreement in principle.
When they returned to proceed with her recommendation, the high LTV deal had been withdrawn from the market.
Her clients did not meet HSBC’s affordability criteria leaving her with one option, to recommend they go direct to Nationwide for their mortgage.
She said: “I have supported Nationwide a lot over the years and this situation is fairly frustrating. It is only right they show us the same support.”
Not told about dual pricing
On 30 March, Nationwide withdrew its lending above 75 per cent LTV through intermediaries. Less than a month later, the society increased lending back up to 85 per cent.
Mortgages at 95 per cent LTV have continued to be available through its branch network throughout the coronavirus crisis.
But some brokers say they were not told by the society it had introduced dual pricing and were only beginning to hear the news as other lenders pulled out of the market.
Accord, Virgin Money, Clydesdale and Furness Building Society have all removed their 90 per cent LTV ranges this week leaving HSBC and a handful of small building societies left to serve low deposit borrowers through the intermediary market.
George Williamson, director of Mortgage Advice Brokerage, said he had heard from other brokers that they were losing clients to Nationwide’s direct proposition but no one had been told directly by the business development manager (BDM) that the society had started dual pricing.
He said: “It just makes us look stupid to our clients when we say we can’t help because there isn’t anyone lending to borrowers with a five per cent deposit, and then they come back and tell you they can go straight to Nationwide.”
Nick Morrey, product technical director, John Charcol, added: “Nationwide’s 90 per cent plus range is a step in the right direction.
“The society is serving its members by offering something that the rest of the market is not. But the sooner Nationwide opens up to all channels, and other lenders return to this market the better.”
A Nationwide spokesman said: “We are working on a solution which offers a consistent loan to value approach across all channels and will be in a position to update our proposition soon.”