Virgin Money’s mortgage customers express frustration over more favorable offers provided by owner Nationwide.

Virgin Money customers are expressing frustration over the fact that Nationwide borrowers are being offered better-value mortgage deals, despite both brands being part of the same group. Nationwide acquired Virgin Money last autumn, but the two brands are still operating separately. Some Virgin mortgage-holders claim they are treated as second-class citizens when looking to switch to a new deal, with some cases requiring them to pay nearly £1,000 more than equivalent Nationwide customers to obtain the same interest rate. However, a mortgage broker mentioned that it is standard practice for borrowers to not be able to switch between brands within the same group. Across the UK, approximately 1.6 million fixed-rate mortgage deals are set to expire in 2025, leaving many individuals concerned about potential payment increases when switching to a new product. Nationwide concluded its takeover of Virgin Money last October and gained a £2.3 billion profit from the deal. Although the two brands continue to operate independently, borrowers cannot switch between them without going through the process of remortgaging and incurring associated costs.

Source: https://www.theguardian.com/business/2025/may/17/virgin-money-mortgage-holders-cry-foul-over-owner-nationwides-better-deals