The move will eventually result in the Virgin Money brand disappearing from the high street, but this is unlikely to happen before 2030.
Read on to find out how the takeover could affect customers, and for advice on whether now is a good time to switch banking providers.
What will the deal mean for bank branches?
Nationwide has reached a preliminary agreement to buy Virgin Money, subject to an inspection of the lender's books.
Should the deal go through, the Virgin Money brand will be phased out over a period of around six years. Staff numbers will be unaffected 'in the near term'.
The proposed 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).
Nationwide says it will keep a branch open in every location where both brands are present until at least the start of 2026.
What will the takeover mean for customers?
If this deal goes through, however, it will eventually result in the Virgin Money brand disappearing altogether.
'A different way of thinking'
David Hollingworth of the broker L&C mortgages says: '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'.
Should I switch away from Virgin Money?
There's no immediate need to close your Virgin Money account or switch to a different provider - and, whatever happens, your savings are protected under the Financial Services Compensation Scheme (FSCS).
However, today's news may prompt you to consider at whether you're really getting all you can from your bank.
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source https://www.which.co.uk/news/article/nationwide-takeover-virgin-money-what-it-means-for-customers-aK9iq0B0C0LT