This decision follows a survey of employees, which revealed 57% wanted to work full time from home.
In comparison, 6% wanted to return to the office permanently, and 36% wanted a mixture of both.
As a result of the decision, the lender is leasing three offices in Swindon; it also intends to change its current offices, with fewer traditional meeting rooms and more collaboration spaces.
Branch employees will still be required to work from their respective locations.
Joe Garner, chief executive of Nationwide, said: “The last year has taught many of us that ‘how’ we do our jobs is much more important than ‘where’ we do them from.
“We have listened and learned, and we are now deciding to move forward, not back.
“We are putting our employees in control of where they work from, inviting them to ‘locate for their day’ depending on what they need to achieve.
“Our data suggests that working in a home environment encourages us to think more about the impact on others when making decisions.”
