Nationwide announces record mortgage lending


Nationwide Building Society announced it had a record year for lending last year as it revealed new loans were up 20 per cent year-on-year.

Its annual results, published today, show it lent a record £32.6bn in the year to 4 April, up from £27.1bn in the previous year. This gives the mutual a market share of 13.4 per cent.

Net mortgage lending was up 28 per cent to £9.1bn over the same period.

The average LTV of Nationwide’s new lending was 69 per cent LTV, which is roughly what it was the year before. The average LTV of its book fell slightly from 56 to 55 per cent.

Its residential arrears fell from 0.49 per cent to 0.45 per cent over the period and are significantly lower than the Council of Mortgage Lenders’ average of 1.04 per cent.

Profit increased 30 per cent from £1bn to £1.3bn.

Nationwide chief executive Joe Garner said: “Nationwide has demonstrated that outstanding customer service is the most sustainable path to excellent business performance. It’s a credit to the management and people of the society that they have consistently understood this and organised Nationwide around this principle. As a result, last year we lent more money to help people into a home of their own than since before the financial crisis in 2007.

“More people are also choosing to manage their money with Nationwide, with over half a million new current accounts opened in the year. And our loyalty accounts and regular savings offering has led to an increase in member deposit balances of £6.3bn.

“It is my privilege to have been asked to lead an organisation which has consistently demonstrated that it is possible to be successful by doing the right thing. Our mutual status creates an ownership model that allows us to take a long term view and make decisions in the best interests of our members. This, and our talented people, is Nationwide’s strength and our opportunity.”