Nationwide Building Society Strengthens Position with Key 2025 Developments

9 December 2025 Finance and Banking

UK’s Largest Building Society Demonstrates Financial Resilience

Nationwide Building Society, the world’s largest building society with over 16 million members, has solidified its position as the second largest provider of mortgages and retail deposits following its acquisition of Virgin Money UK PLC. Recent developments highlight the institution’s robust financial health and commitment to member services.

Passing Critical Stress Tests with Strong Results

Nationwide Building Society passed the 2025 stress test with strong capital ratios, with no additional actions required from Nationwide, affirming its stability. The hypothetical stress specified a fall in house prices of 28%, a peak in the unemployment rate of 8.5%, and a peak in Bank Base Rate of 8%, with the Bank calculating the Group’s minimum CET1 ratio as 14.5%, comfortably above the Bank’s minimum requirement of 6.5%.

Mortgage Rate Reductions Benefit Homebuyers

In a significant move for prospective homeowners, the lender has confirmed it will be slashing rates across its fixed rate mortgage range, with mortgage rates dropping by up to 0.21 percentage points across two, three and five-year products. Nationwide’s lowest rate now stands at 3.58 per cent, marking the first time that the building society has offered a fixed mortgage rate lower than 3.60 per cent since September 2022.

Expanding Support Services and Branch Commitment

Nationwide branches remain popular, with an 11% increase in customers using them over last year, with over a third of current accounts and over a fifth of savings accounts opened in branch. The building society has also launched innovative support initiatives, including its renewed pledge to Britain’s high streets and commitment to keep all 696 Nationwide and Virgin Money branches open until 2030.

Significance for Members and the Financial Sector

Market-leading growth over the half year has been delivered alongside a strong financial performance, with underlying profit before tax of £977 million, a CET1 ratio of 18.4% and leverage ratio of 5.2%. These developments underscore Nationwide’s position as a stable, member-focused institution navigating challenging economic conditions whilst maintaining competitive offerings and expanding accessibility for customers across the UK.