Virgin borrowers cry 'foul' over Nationwide deals

Some Virgin Money customers are crying "foul" over the fact that Nationwide borrowers are being offered better-value mortgage deals, even though they are now part of the same group.

- Rupert Jones

Nationwide bought Virgin Money last October, but the brands remain separate and some Virgin mortgage-holders claim that when it comes to moving on to a new deal, they are being treated as second-class citizens.

This week, they would, in some cases, have to pay almost £1,000 more than an equivalent Nationwide customer to get the same interest rate.

However, one mortgage broker told us it was standard practice that a borrower was not able to hop from one brand to another where both were part of the same group.

Overall, about 1.6m fixed-rate mortgage deals across all UK lenders are due to expire in 2025.

Many people are worried about a big jump in payments when they switch to a new product.

When someone's existing deal nears its expiry date, their lender will usually be in touch offering a selection of rates.

After completing its takeover of Virgin Money, Nationwide revealed it had bagged a £2.3bn gain from the deal as it had effectively bought the brand at a chunky discount.