The deal makes Nationwide the second largest retail mortgage lender in the UK with assets in excess of £160 billion and over 12 million members. The merger also brings together the respective specialist lending brands UCB Home Loans and The Mortgage Works, which are being retained in a dual strategy for intermediaries.
Chief executive, Graham Beale, posted a message on the Nationwide website welcoming Portman members. He wrote: “Although you may be new to Nationwide, there are many things that will be familiar to you. We are a mutual building society, and that means that all of our focus and activities are tailored to meet your needs. We do not have any shareholders and therefore we do not need to generate profits to pay dividends. However, we do work to generate value for you.”
Sue Knight, spokesperson for Nationwide, said: “All Portman mortgage holders will come to us, and will be contacted at the end of their term with options from Nationwide. We remain as the largest building society to be solely owned and run by our members, and we can now offer better products and service.”
Rachel Le Brocq, press and public affairs officer at the Building Societies Association, said: “It’s good news for the sector as personal finance will benefit from a large powerful mutual and it will offer a challenge to the large identikit banks. This merger will offer something different but not undermine any of the local building societies or take away their characteristics.”
