Nationwide Building Society has agreed to purchase Virgin Money in a £2.9 billion deal – however what may this imply for patrons with mortgages with the financial institution?
Nationwide is, in accordance with UK Finance knowledge, the third largest lender within the UK. It ranks behind Lloyds Banking Group (which incorporates Halifax) and NatWest with £37.8bn of gross lending on its books in 2022. Virgin Money, in the meantime, was ranked because the seventh largest lender with £10.5bn of gross lending in 2022.
Graham Cox, director at SEMH Self-Employed Mortgages, talking by way of the Newspage company, mentioned: “Nationwide is firing a shot throughout the bows of Halifax with this acquisition, threatening their standing because the UK’s primary mortgage lender by market share.
“Nationwide’s reach will also increase banking competition on the high street, which can only be a good thing for consumers, given how complacent some of the established banks are.”
Whilst Nationwide has mentioned it received’t ditch the Virgin model, initially, it will finally be phased out over a six-year interval as soon as the takeover has accomplished.
David Hollingworth, affiliate director at L&C Mortgages mentioned: “Borrowers don’t have anything to fret about and their mortgage will proceed as regular.
“In fact, both brands are set to continue for some time to come, so the market should continue to benefit from differentiated ranges in the near term.”
He added: “Nationwide underlines its position as a superpower of the mutual sector in buying a considerable financial institution participant within the mortgage market.
“The combination will create another Goliath furthering Nationwide’s ability to directly take on the big banking groups.”
He went on to say: “Virgin Money has been very aggressive within the mortgage market and proven itself greater than able to going toe to toe with the most important excessive road banks. At occasions it has proven a capability to carry a distinct mind-set to the market and sought to innovate in its product choices.
“It additionally has a stable heritage in with the ability to take a extra versatile method for the correct clients to assist debtors that could be somewhat exterior the usual excessive road choices.
“That expertise will hopefully appeal to Nationwide rather than risk the gradual demise of the more individual approach that can be available through Virgin’s Clydesdale mortgage brand in particular.”
