By clicking a retailer link you consent to third-party cookies that track your onward journey. If you make a purchase, Which? will receive an affiliate commission, which supports our mission to be the UK's consumer champion.
Nationwide's £2.9bn takeover of Virgin Money has now formally been completed, creating the second biggest mortgage and savings group in Britain.
The process of combining the two brands will take up to six years, but when finished the provider will boast almost 25 million customers and nearly 700 branches.
Read on to find out the latest on the transaction, and for advice on whether now is a good time to switch banking providers.
The deal between Nationwide and Virgin Money, which was approved by UK regulators in September, formally completed on 1 October.
The move will eventually result in the Virgin Money brand disappearing from the high street, but this is unlikely to happen before 2030.
Debbie Crosbie, chief executive of Nationwide, says the merger means the building society is now 'stronger' and 'able to deliver even greater value' to customers through its products and services.
The merger follows an investigation by the Competition and Markets Authority (CMA) over concerns it could reduce competition in the banking sector. However, the acquisition was cleared by the CMA on 19 July.
The takeover would potentially create a group with 696 bank branches, second only to Lloyds Banking Group (which includes Lloyds Bank, Halifax, Bank of Scotland and MBNA).
Virgin Money has around 6.5 million customers and 91 high street branches, though it closed 40 last year and 30 in 2022.
Nationwide says it will keep a branch open in every location where both brands are present until at least the start of 2028.
Long-term Virgin Money customers may be familiar with takeovers. The brand was previously bought by CYBG, the owner of Clydesdale Bank.
This deal, however, will eventually result in the Virgin Money brand disappearing altogether.
Virgin Money offers current accounts, savings accounts, mortgages, credit cards and investment products. So in the long-term, the loss of the brand may result in less choice for consumers.
In the mortgage market, Virgin Money is known for its innovative products, having launched 15-year fixed-rate mortgages back in 2019. It currently offers market-leading fee-free 90% fixed-rate mortgages.
Likewise, it brought in instalment plans for credit card customers in early 2022 as an alternative to buy now, pay later schemes.
David Hollingworth of the broker L&C mortgages told Which?: 'At times, Virgin Money has shown an ability to bring a different way of thinking to the market and sought to innovate in its products.
'It also has a solid heritage in being able to take a more flexible approach for the right customers to help borrowers that may be a little outside the standard high street offerings.
'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 brands'.
There's no immediate need to close your Virgin Money account or switch to a different provider.
Your deposits will still be protected by the Financial Services Compensation Scheme (FSCS), up to £85,000. Nationwide confirmed to Which? that the building society will keep two separate banking licences following the takeover. So a customer with deposits worth up to £85,000 with Nationwide and deposits worth up to £85,000 with Virgin Money will be protected up to £170,000.
However, the news may prompt you to consider whether you're really getting all you can from your bank.
Nationwide fares much better than Virgin Money in our mortgage satisfaction survey. It topped our table of lenders with a score of 78% and was named a Which? Recommended Provider. Virgin Money finished in 17th place out of 22 providers.
Likewise, in our annual bank account survey, Nationwide finished 5th with a score of 78%, while Virgin Money finished 20th out of 21 providers with 68%.
We also awarded Nationwide 'Eco Provider' status for having no exposure to fossil fuels in its banking activities.
Find the right mortgage using the fee-free service provided by L&C Mortgages
Compare mortgagesIf you click on the link and complete a mortgage with L&C Mortgages, L&C is paid a commission by the lender and will share part of this fee with Which? Ltd helping fund our not-for-profit mission. We do not allow this relationship to affect our editorial independence. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
This article was first published in April 2024. It was updated on 1 October with details on the merger being completed.
The article was changed to amend the date Nationwide will keep Virgin Money bank branches open until. A previous version stated it was until at least 2026, but the correct year is now 2028.
Which? Limited is registered in England and Wales to 2 Marylebone Road, London NW1 4DF, company number 00677665 and is an Introducer Appointed Representative (FRN 610689) of the following:
1. Inspop.com Ltd for the introduction of non-investment motor, home, travel and pet insurance, who are authorised and regulated by the Financial Conduct Authority (FCA) to provide advice and arrange non-investment motor, home, travel and pet insurance products (FRN310635). Inspop.com Ltd is authorised and regulated by the Financial Conduct Authority (FCA) to provide advice and arrange non-investment motor, home, travel and pet insurance products (FRN310635) and is registered in England and Wales to Greyfriars House, Greyfriars Road, Cardiff, South Wales, CF10 3AL, company number 03857130. Confused.com is a trading name of Inspop.com Ltd.
2. LifeSearch Partners Limited (FRN656479), for the introduction of Pure Protection Contracts and Private Health Insurance, who are authorised and regulated by the FCA to provide advice and arrange Pure Protection Contracts and Private Health Insurance Contracts. LifeSearch Partners Ltd is registered in England and Wales to 3000a Parkway, Whiteley, Hampshire, PO15 7FX, company number 03412386.
3. HUB Financial Solutions, for the introduction of equity release advice, who are authorised and regulated by the Financial Conduct Authority (‘FCA’) to provide advice and guidance on financial products for those who have retired or are approaching retirement (FCA Firm Reference Number: 455713). HUB Financial Solutions is registered in England and Wales to Enterprise House, Bancroft Road, Reigate, Surrey RH12 7RP, company number 05125701.
4. Alan Boswell Insurance Brokers Ltd (FRN 301), for the introduction of non-investment landlord insurances, who are authorised and regulated by the Financial Conduct Authority to provide advice and arrange insurance contracts. Alan Boswell insurance brokers Ltd is registered in England at Prospect House, Rouen Rd, Norwich NR1 1RE, company number 02591252.
Other financial services:
Mortgage service provided by London & Country Mortgages (L&C), Unit 26 (2.06), Newark Works, 2 Foundry Lane, Bath BA2 3GZ. London & Country are authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
We do not make, nor do we seek to make, any recommendations or personalised advice on financial products or services that are regulated by the FCA, as we’re not regulated or authorised by the FCA to advise you in this way. In some cases, however, we have included links to regulated brands or providers with whom we have a commercial relationship and, if you choose to, you can buy a product from our commercial partners.
If you go ahead and buy a product using our link, we will receive a commission to help fund our not-for-profit mission and our campaigns work as a champion for the UK consumer. Please note that a link alone does not constitute an endorsement by Which?.
