In the recently publicised 'dual standard variable rate' mortgage fiasco, Nationwide seem to have come out smelling of roses, compared to the similar situation with Halifax.
Last month the Financial Ombudsman Service ruled in favour of an individual case where the borrower had a discount off the society's standard variable rate (5.24%). At the time, the society also operated a base mortgage rate of 4.74% which the borrower wanted his discount based on.
Nationwide have recently announced that borrowers in a similar situation will be compensated (estimated to cost around £90m) and moved on to the lower base mortgage rate. They are abolishing the standard variable rate of 5.24% altogether and will be backdating compensation to 1 March 2001.