Latest news with #buildingSociety
The Independent
29-05-2025
- Business
- The Independent
Nationwide confirms £100 bonus payment coming later this year – what you need to know
Nationwide has confirmed that millions of members will once again receive a £100 bonus payment later this year as the building society posts a substantial jump in annual profits. For the third year running, a 'Fairer Share' payment of £100 will be distributed to eligible Nationwide members. The bank says that this includes over 4 million people in 2025, up from 3.85 million last year and 3.4 million the year before. The initiative will cost the building society £400 million – the most it has ever distributed as part of the Fairer Share Scheme. As with previous years, receiving the payment will be subject to certain eligibility criteria. The building society explains that it will go to 'eligible members choosing Nationwide for their everyday banking, in addition to holding a qualifying savings or mortgage product. ' Those who qualify will see the payment paid directly into their account between 18 June and 4 July, Nationwide has confirmed. The payment comes as Nationwide posts a 30 per cent jump in annual profits after an 'outstanding' year that saw it complete the takeover of Virgin Money. The firm was able to pay its members a one-off £615 million 'Thank You' reward earlier this year following the deal. The mutual reported pre-tax profits of £2.3 billion for the year to 31 March, up from £1.8 billion the previous year, which came despite it handing out a record £2.8 billion in value to members including £1 billion in rewards. On an underlying basis, pre-tax profits fell to £1.9 billion from £2 billion as Nationwide said it focused on offering competitive interest rates to customers. Debbie Crosbie, group chief executive of Nationwide Building Society, said: 'Nationwide has had an outstanding twelve months. 'We returned a record £2.8 billion in value to our members and recorded our highest ever year for growth in mortgage lending and retail deposit balances.' She added: 'The Virgin Money performance was strong in the six months since our acquisition, with improvements in customer service and a return to growth in mortgage lending.' The firm completed the £2.9 billion takeover of Virgin Money last year, which has seen it become the UK's second largest mortgages and savings provider. The group said integration of the acquisition was 'progressing well'. Nationwide said it was continuing to run the two businesses separately initially after the acquisition and had no plans for job cuts in the short-term. But Ms Crosbie said it was 'too early to say' what impact there would be on staff of the combined group further out as it integrates the businesses. 'Every business always reviews its workforce and we'll continue to do that on an ongoing basis, but it's too early to say if there'll be an impact on the broader workforce,' she said. She also signalled Nationwide would keep Virgin Money's Newcastle headquarters, with Ms Crosbie saying 'the current footprint that we have will remain the same'.
The Sun
29-05-2025
- Business
- The Sun
Nationwide confirms millions of customers to get £100 direct into bank accounts in DAYS – do you qualify?
MILLIONS of customers at a major building society are set for a £100 cash boost. Around 4million Nationwide customers will be entitled to a share of the cash pot. 1 This is part of Nationwide's Fairer Share programme, which set out to reward customers who bank with the lender or meet certain lending criteria. This is the third consecutive row the lender has handed out the cash. Last year, it paid out a total of £385million to 3.85million customers and the year before £340million to 3.4million people. Back in December, the building society's boss confirmed it would make the payment for a third time. It's worth noting, the £100 Fairer Share payment is separate to the £50 issued to around 12million Nationwide customers between April 9 and May 14. Debbie Crosbie, Nationwide's Chief Executive, said: 'Nationwide has had an outstanding twelve months. "We returned a record £2.8 billion in value to our members and recorded our highest ever year for growth in mortgage lending and retail deposit balances, and we remain first for customer service.' WHO GETS THIS PAYMENT? You must have had a Nationwide account open by the end of March 2025 to get the money. You would have needed to have £100 in savings or owe £100 on your mortgage by that date. You also will need to have used your account within the first three months of this year. Savers had a chance to put money in their accounts before this date to give themselves a chance to get their hands on the cash. WHAT IF I AM NOT A NATIONWIDE CUSTOMER If you are not a Nationwide customer then you unfortunately will not get the cash. But you can open up an account with the lender to ensure you do not miss out on further offers. And Nationwide is not the only bank giving customers free cash. TSB is giving new customers who switch to the high street bank a £100 switching incentive. You get the £100 upfront but if you spend on you debit card for 20 times in the first six months you get a £15 a month cash back. How do I switch bank accounts? SWITCHING bank accounts is a simple process and can usually be done through the Current Account Switch Service (CASS). Dozens of high street banks and building societies are signed up - there's a full list on CASS' website. Under the switching service, swapping banks should take seven working days. You don't have to remember to move direct debits across when moving, as this is done for you. All you have to do is apply for the new account you want, and the new bank will tell your existing one you're moving. There are a few things you can do before switching though, including choosing your switch date and transferring any old bank statements to your new account. You should get in touch with your existing bank for any old statements. When switching current accounts, consider what other perks might come with joining a specific bank or building society. Some banks offer 0% overdrafts up to a certain limit, and others might offer better rates on savings accounts. And some banks offer free travel or mobile phone insurance with their current accounts - but these accounts might come with a monthly fee.
Daily Mail
24-05-2025
- Business
- Daily Mail
Nationwide members set for £400m boost when bumper results revealed
Nationwide is on track to deliver a £400 million boost to millions of members this week when it delivers bumper annual results. Britain's biggest building society is expected to dish out £100 each to 4 million eligible customers. It will be the third year in a row that the cash has been paid to current account holders who have savings or a mortgage with the lender too. This is on top of a £50 payment that went to 12 million members this year, after Nationwide's £2.9 billion takeover of Virgin Money. That one-off £600 million payment was described as a 'thank you' after Nationwide calculated that it made a £2.3 billion gain on the deal by buying Virgin at a bargain price. Nationwide began its 'fairer share' scheme in 2023. As a mutual owned by customers not shareholders, it can distribute some profits to them rather than paying dividends. The first payments saw £100 paid to 3.4 million members in 2023, then 3.85 million in 2024. A payment this year will take the total past £1 billion. Nationwide has said it intends to make the payment every year on the condition it will not be 'detrimental' to the strength of its finances. The firm's annual results, due on Thursday, are expected to have been boosted by a borrowing surge ahead of April's rise in stamp duty. Meanwhile boss Debbie Crosbie is urging MPs to ease borrowing rules to allow 'our young people to get on the housing ladder'.
Daily Mail
15-05-2025
- Business
- Daily Mail
Nationwide makes major change to mortgage rules, meaning it can lend home owners more
Nationwide has made a significant change to its mortgage lending rules, which will increase the maximum amount it can hand out to borrowers. Britain's biggest building society has adjusted its 'stress rates' - the hypothetical higher mortgage rates it tests borrowers' finances against when they apply for a mortgage or remortgage. Lenders do this to check whether borrowers could still afford their monthly payments if their mortgage rate increased. Banks have several different stress test rates depending on the mortgage term and other factors. Commonly, lenders will check that a borrower could pay a mortgage rate two or three percentage points higher than their current one, so if they were applying for a rate of 4 per cent their finances might be tested against a 6 or 7 per cent rate. Stress rates became common after the 2008 financial crisis, as one of several measures designed to prevent homeowners taking loans that were unaffordable. However, some industry insiders take the view that stress rates at this level are too harsh, preventing people who could comfortably afford a mortgage from getting one. How much more could YOU borrow? Nationwide is reducing its stress rates by between 0.75 and 1.25 percentage points - including both its standard stress rate, and the rate applied to eligible first-time buyers and home movers fixing their deal for at least five years. It claims that a home mover with a household income of £75,000, who was taking a five or 10-year fixed mortgage on a 25-year term, could previously have borrowed a maximum of £307,000 but could now borrow £336,800 - a £29,800 uplift. A first-time buyer earning £55,000, taking a five or 10-year fix and using Nationwide's 'helping hand' mortgage, could see their maximum borrowing increase from £304,200 to £330,000 on a 27-year term. This would be a £25,800 rise and would take the loan from 5.53 times their income to six times. Someone remortgaging, but not taking any additional borrowing, could previously borrow £235,500 but may now get up to £278,100 - an increase of £42,600. This would be based on them having an income of £45,000 and a 40-year mortgage term. This would mean their maximum borrowing would have gone from 5.23 times their salary, to 6.18 times. However, banks are restricted in the amount of loans they can hand out which are more than 4.5 times what the borrower earns. Only 15 per cent of a lender's mortgages can exceed this limit - but Nationwide is calling on the Bank of England to increase it. David Hollingworth, associate director at broker L&C Mortgages, said: 'Nationwide has a strong focus on first-time buyers and lower stress rates will hopefully help more reach toward the higher end of the maximum six times income, that it can offer through its 'helping hand' proposition. 'Those coming to the end of a deal could also benefit. Customers with concerns that they wouldn't meet a new lender's criteria, due to the higher rate environment, could find that affordability is now more generous than they thought. 'That should open up more choice from the open market rather than necessarily having to stick with an existing lender.' It is not the first mortgage lender to reduce its stress rates in recent weeks. Last month, Lloyds Banking Group adjusted its stress rates, claiming the typical customer could borrow £38,000 more. This applies to all banks in the group including Lloyds, Halifax and Bank of Scotland. This was followed by HSBC and First Direct, which made changes to allow customers to borrow £39,000 more on average. Santander has also made similar adjustments to offer £35,000 more borrowing. The banks are responding to guidance from watchdog the Financial Conduct Authority, which has said that, as interest rates fall, lenders should make sure they are not 'unduly restricting access to otherwise affordable mortgages'. Henry Jordan, Nationwide's director of home, said: 'Affordability remains a key challenge and this change, along with our well-established and popular Helping Hand proposition, shows we're serious about tackling it. 'Whilst the FCA's clarification on affordability stress rates could support increased levels of home ownership, the Bank of England's flow limit dampens its potential impact. 'That's why Nationwide continues to call for a review of the 15 per cent limit, so that we, and other lenders, can help more people access the long-term benefits of home ownership.' Best mortgage rates and how to find them Mortgage rates have risen substantially over recent years, meaning that those remortgaging or buying a home face higher costs. That makes it even more important to search out the best possible rate for you and get good mortgage advice. Quick mortgage finder links with This is Money's partner L&C > Mortgage rates calculator > Find the right mortgage for you To help our readers find the best mortgage, This is Money has partnered with the UK's leading fee-free broker L&C. This is Money and L&C's mortgage calculator can let you compare deals to see which ones suit your home's value and level of deposit. You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes. If you're ready to find your next mortgage, why not use This is Money and L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you.
Daily Mail
13-05-2025
- Business
- Daily Mail
Will Nationwide pay a £100 Fairer Share loyalty bonus for 2025? Exact date we'll find out
Many Nationwide customers will have it in the back of their mind a Fairer Share payment announcement could be made soon. Last June, 3.85million Nationwide members received a £100 payment from the building society – 24 per cent of its 16million members. Nationwide paid out £385million to members, as part of its second annual Fairer Share offer it announced in May 2024. The £100 bonus was paid to eligible members who had a current account and at least £100 in a savings account or at least £100 outstanding on a mortgage as of 31 March 2023. The year prior, in June 2023, 3.4million Nationwide members received the £100 Fairer Share payment. Again, this was revealed in May. As a building society, Nationwide is owned by its members, who are meant to benefit from profits through better rates on savings, mortgages and other products. This year, it's likely that members will find out on 29 May whether the building society intends to pay out a Fairer Share bonus again or not - and if it does, that the payment is £100 per eligible customer. This is when it announces its full-year results for the financial year 2024/25, including pre-tax profit. Whether or not the mutual will pay out the bonus again to its members this year will depend on the profits it makes. A Nationwide spokesman said: 'Nationwide's Board will decide on a Fairer Share payment for 2025 and it will depend on our financial performance. The decision will be announced as part of our full year results 29 May.' In April, Nationwide said: 'We want to repeat [the Fairer Share payment] this year, although this will depend on our financial performance.' Could a payment be even higher this time? One financial expert believes a potential Fairer Share payment could be worth even more than £100 if Nationwide reports strong financial results in May. James Blower, founder of the Savings Guru says: 'I expect Nationwide to report strong results for 2024.' For this reason, he believes 'there will be a payout of at least £100, if not more.' Last year, Nationwide raked in £1.77billion in annual pre-tax profits in the year to April 2024. This was down from £2.2billion in the year to April 2023. Interim results in November revealed the mutual's profits tumbling by 43 per cent to £568million. Nationwide said this was mainly down to falling interest rates – as higher rates tend to mean bigger profits for lenders The mutual banked a gain of £2.3billion from its takeover of Virgin Money in November, resulting in a one-off £50 'Big Thank You' payment to over 12million members. This payment is 'completely separate' to the Fairer Share payment so '[they] would not impact one another,' a Nationwide spokesman said. James Blower says: 'I don't believe the Virgin Money takeover, and the £50 member payout from that, will have any negative impact on whether a Fairer Share payout is made.'
