Nottingham to ring changes?
An intermediary, who wished to remain anonymous, said he had been contacted by the lender informing him of changes to the building society’s product structure. He said: “I had someone from Nottingham Building Society contact me, saying that it was looking to change the way its rates are structured, to a daily rate. It would be very significant if it changed it rates to daily interest, as, at the moment, its rates are always up near the best-buy tables. Because its rates are based on monthly, rather than daily, this could put some people off, and so it would make sense to switch and make it a more attractive proposition.”
He said the building society may see initial drops in profits, but would see business quickly pick up as a result of adopting the new rates.
“It may cost them a bit in profits at the start if they change the rate structure, but in the long term they will get more business and it will benefit everyone; brokers, clients and the building society,” the source added.
However, Rachel Slack, mortgage product manager at Nottingham Building Society, said the lender currently offers only one product on a daily interest rate, and had not yet finalised any other changes to its mortgage range. She said: “We have not changed from monthly to daily interest. We might be making some changes to our ranges, but these are not expected to be announced until around mid-to-late May this year. We are currently finalising what we intend to do with our mortgage ranges.”