Nationwide has unveiled plans to launch an interest-only mortgage for older borrowers in its annual report today, as profits and net lending both tumbled.
The building society’s pre-tax profits for the 12 months to April were down 7.3 per cent on the previous year at £977m, marking the second annual decline.
The lacklustre performance was driven by a steep drop in net mortgage lending from £8.8bn to £5.8bn, amid fierce competition.
Chief executive Joe Garner’s overview reveals that the lender is planning to do more to help older borrowers in the near future.
He says: “Member needs change in later life, so we expanded our mortgage range with a lifetime mortgage which will allow people to access equity in their home in later life.
“Next, we plan to launch a retirement interest only mortgage, giving members more choice in managing their finances as they get older.”