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Home Business Nationwide swoops on Virgin Money in £2.9 billion deal

Nationwide swoops on Virgin Money in £2.9 billion deal

by News Room
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Riz Malik of R3 Mortgages said: “We need more competition in the mortgage market, not less. With two different styles of mortgage lending, it will be interesting to see what emerges from this acquisition. However, given the outlook for the housing market after yesterday’s damp squib of a Budget, we may see further consolidation as more lenders are forced to compete for a smaller market.”

Justin Moy at EHF Mortgages said: “Consolidation within the mortgage market is inevitable when thin margins and reduced application numbers are set to continue for a long period of time. This will inevitably reduce competition in the residential market, potentially costing borrowers over the long term.”

Nationwide willl pay huge fees to the bankers for securing the deal. The combined group will have assets of £366 billion and become the second largest provider of mortgages and savings in the UK after Lloyds Bank.

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