Kim
Nationwide Building Society is facing growing criticism as customers of its newly acquired brand, Virgin Money, are being charged up to £1,000 more for the same mortgage deals.
The disparity has sparked outrage among loyal Virgin Money borrowers who now find themselves at a disadvantage, even though both brands are owned by the same group.
In this article, we explore the details behind the fee controversy, what Nationwide and Virgin Money have said, and what customers can do next.
The Issue: Same Rate, Different Charges
Following Nationwide’s £2.3 billion acquisition of Virgin Money, many assumed customers would benefit from unified pricing. However, reality tells a different story.
A recent example shows a Virgin Money customer with a 4.54% two-year fixed mortgage expiring on 31 July 2025 was offered a new two-year fix at 3.84%. Meanwhile, **Nationwide customers were being offered the same 3.84% fix but with a significantly lower product fee—**just £0 to £999 less in some cases.
Key Comparisons
| Product | Virgin Money | Nationwide | Fee Difference |
|---|---|---|---|
| 2-Year Fixed @ 3.84% | £999 Fee | £0 – £999 Fee | Up to £999 |
| 2-Year Tracker Rate | 4.48% | 4.39% | 0.09% |
This has left many Virgin Money borrowers paying significantly more for identical mortgage rates offered by the parent company.
Why the Gap Exists
Nationwide claims that despite the acquisition, Virgin Money and Nation wide remain separate lenders during the integration phase. Therefore, existing Virgin customers can’t simply switch over to Nationwide deals.
A Nationwide spokesperson explained:
- “Nationwide and Virgin Money continue to operate as separate lenders following the acquisition and are being integrated over time.”
Additionally, customers looking to move from Virgin to Nationwide must go through a remortgage process, not a straightforward product transfer.
Mortgage broker David Hollingworth from L&C Mortgages noted:
- “It’s pretty typical that you wouldn’t be able to switch between one brand and another. Virgin is just as likely to be competitive as Nationwide.”
The Takeover and the Fallout
When Nationwide’s chief executive Debbie Crosbie announced the £2.3 billion acquisition, she described it as “thoughtful and considered.” Yet, this latest customer fallout suggests the lack of pricing parity between the two brands was either overlooked or underestimated.
The Virgin Money board and its competitors were reportedly “well aware” of the market differences, yet many customers were not made aware of these implications, particularly regarding post-merger treatment.
Customers React
Unsurprisingly, many Virgin Money customers have taken to forums and financial websites to voice their frustration. Being under the same parent brand has created an expectation of equal treatment—especially in pricing.
Some have said they feel penalised for staying loyal to Virgin Money, while others argue that the £1,000 difference is borderline discriminatory considering the ownership structure.
What Can Customers Do?
If you’re a Virgin Money mortgage holder, here’s what you can consider:
- Remortgage to a different lender entirely (which may include better rates or incentives).
- Negotiate directly with Virgin Money to see if they’ll match Nationwide’s deal.
- Wait for the brands to fully integrate—though timelines are unclear.
Tips for Affected Customers
| Action | Description |
|---|---|
| Compare with other lenders | Use online tools to see what other mortgage providers offer. |
| Speak to a mortgage broker | They can help you switch without extra fees or identify better deals. |
| Ask for a rate match | Contact Virgin Money directly to ask if they can align the offer with Nationwide. |
While the Nationwide-Virgin Money merger promised stability and long-term gains, many customers are now feeling disillusioned.
The glaring £1,000 difference in mortgage fees for identical deals has put Virgin Money customers at a clear disadvantage—raising serious questions about fairness and transparency.
If you’re a Virgin Money borrower affected by this fee gap, it’s essential to explore your remortgaging options, speak with your lender, or seek financial advice. With interest rates still volatile, making an informed decision now could save you hundreds—or even thousands—over the next few years.
FAQs
Why can’t Virgin Money customers access the same rates as Nationwide?
Although both are owned by the same parent company, they operate as separate lenders, and integration is still underway. As such, pricing structures remain distinct for now.
Can I switch from Virgin Money to Nationwide directly?
No. Switching between brands requires a full remortgage process, which may involve legal fees, new credit checks, and property valuations.
Is this pricing difference permanent?
Nationwide has not confirmed a specific timeline for integration. Until full merger processes are completed, fee and rate disparities may persist.