Nationwide’s mortgage lending falls by almost £1b
25/11/2014
Nationwide Building Society’s mortgage lending has fallen by almost £1 billion over the past six months, its interim results show.
Nationwide, Britain’s biggest building society, has released figures showing lending at £13.1bn for the six months to September 30, down £900m from the six months to March 30. Net lending was £2bn lower at £3.6bn.
New mortgages lending rules, know as the Mortgage Market Review, has been named as one of the reasons mortgage lending has fallen. The regulations were brought in by the Financial Conduct Authority in April to ensure everyone who was given a mortgage would have the capability to pay it back, and it seems to have reduced the amount of mortgage lending across the board.
Even though Nationwide’s mortgage lending fell, it’s pre-tax profit more than doubled, from £281m to £598m.
The results also show Nationwide has grown its share of the current account market to 6.6%, as well as increasing its ISA sales and mobile banking use.
Graham Beale, Chief Executive of Nationwide Building Society, said:
“We have developed new products, invested in technologies which give our members greater choice in the way they manage their financial affairs, and have rewarded loyal members with some market-leading product offers. Alongside this, we have delivered a strong financial performance and improved our capital position. As a result, our Common Equity Tier 1 ratio is the highest in our peer group, which underlines our position as a safe and secure financial services provider for our members.”
Need financial advice?
If you have any personal finance questions related to this news article, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.
Share this..
Related stories
Royal Bank of Scotland sees more doom and gloom ahead
Despite forlorn hopes of a short term recovery in the banking sector it looks as though we are in for yet more bad news in the short to medium term. Announcing write-downs of over £200 million Royal Bank of Scotland has indicated this will increase in the third quarter of 2008 as the fallout from the credit crunch, economic slowdown and increasing mortgage defaults continues to worsen.
Eco-friendly mortgage on the market
Yorkshire Building Society has just launched its Home Energy Efficiency loan, which offers discounts to existing customers who want to 'go green'.Homeowners can borrow between £1,000 and £15,000 to add eco-friendly improvements to their property.As a discount for the environmentally-friendly, Yorkshire is offering a 1.5 per cent cut in its Standard Variable Rate, which means that borrowers will...
Read MoreCoventry Building Society slashes mortgage rates
The Coventry Building Society has this week announced significant reductions on a number of fixed rate mortgage arrangements which are certainly catching the eye of property buyers. From the 31 August the Society has cut its two-year fixed rate to 2.99% with a three-year arrangement at 3.59% and a five-year deal currently on offer are 4.35%. These are very interesting and very attractive changes t...
Read MoreWill UK mortgages become more expensive in the short term?
The surprising change of strategy by the Nationwide, which has introduced a new standard mortgage rate which is significantly higher than its existing mortgage rate, has the potential to cause a ripple effect throughout the UK mortgage market. Nationwide has for some time been well regarded as offering some of the more competitive mortgage rates in the UK although the new rate, which has no guaran...
Read MoreOne in five sub-prime mortgage holders are struggling
A survey by the housing charity Shelter has revealed that one in five sub-prime mortgage holders are struggling to keep their payments up to date with a significant 5% (37,000 borrowers) expecting to have their homes repossessed over the next six months. However, it was also revealed that up to one third of the 260,000 sub-prime mortgage holders questioned expect to fall behind with their payments...
Read More