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Nationwide boosts mortgage lending

Nationwide boosts mortgage lending

Category: Mortgages

Updated: 23/05/2012
First Published: 23/05/2012

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Nationwide Building Society has bucked the trend in the mortgage market by increasing its lending and helping more buyers secure their first home.

Gross mortgage lending at the UK's largest building society increased by 44% in the year to 4 April, with a total of £18.4 billion lent during the year.

It compares with an overall increase in mortgage lending of 5%.

The number of first time buyers helped by Nationwide increased by 9% to 24,000 during the year.

Graham Beale, chief executive of Nationwide, said the figures demonstrated the mutual's commitment to supporting growth in the economy, as well as meeting the needs of borrowers, especially first time buyers.

The mortgage figures came as the company revealed that profits for its 2011-12 financial year totalled £203 million, a fall from the £317 million reported last year.

Profits were hit by increased costs incurred by the Financial Services Compensation Scheme and the bank levy, while £61 million was spent on restructuring.

Nationwide was also affected by the raft of claims by customers who were mis-sold payment protection insurance.

The building society said it had set aside £103 million to cover claims, significantly more than the £16 million provision in the previous year.

In addition, the number of personal loans taken by customers increased by 43%, to a value of £1 billion.

Addressing the next financial year, Mr Beale said: "Our plan for the forthcoming year is to do more of the same, to focus on the needs of our members and customers, to play our role in supporting the UK economy and to continue to invest to deliver improved levels of service, efficiency and product choice."

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