You are here: Home - News -

Nationwide reports fall in mortgage lending amid tough competition

  • 17/11/2017
  • 0
Nationwide reports fall in mortgage lending amid tough competition
Nationwide profits fell in the first half of the year amid lower mortgage lending and higher costs for bad debts.  

The mutual reported mortgage lending dropped by 5% to £16.7bn, while impairment charges jumped to £59m, with underlying profit down 4% at £588m over the six-month period.

Low interest rates and fierce competition for borrowers appear to be putting more and more lenders under pressure.

Nationwide also today announced its entry into the later life lending market.

In a results statement, Nationwide today said: “Competition in the mortgage market remains intense, and shows no sign of abating.

“Although mortgage volumes remain strong, we’re prepared for the possibility that intense competition combined with declining consumer confidence may lead to a moderation in gross lending and market share in the second half of the year.”

It added: “The increase in impairments is driven by updates to our provision assumptions to reflect the current economic environment. Delinquency levels remain low across all our portfolios.”

It comes after Virgin Money yesterday forecast its mortgage lending to come in at the lower end of expectations in 2018.


Record levels of first-time buyers

However, Nationwide revealed it helped a record 39,500 first-time buyers into homes in the six months to the end of September.

At the same time, the building society’s capital strength is now at its highest ever level.

Nationwide chief executive, Joe Garner said: “Nationwide is in very good shape after another strong set of results.

“The second half may bring tougher trading conditions, but we remain well placed to stand by our members in these uncertain times.

“Nationwide is financially secure and will continue to promote the long-term interests of both the Society and our members.”

The lender said excluding one-off gains from the previous year, profits increased year on year.

Nationwide chief financial officer, Mark Rennison, said: “We grew our current account base substantially, exceeding 7 million accounts for the first time, we increased prime mortgage gross lending, and maintained our share of retail deposits.”

There are 0 Comment(s)

Comments are closed.

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.

Read previous post:
Al Rayan Bank reduces rental rates across product range

Al Rayan Bank has decreased rental rates across its range of discounted variable Home Purchase Plans (HPPs) by 0.25%.