The report added that it had helped over 87,000 first-time buyers, which it said was around one in seven novice home owners.
The mutual said that this was partially due to 95 per cent loan to value (LTV) mortgage options and allowing homebuyers to borrow higher multiples of their salary.
It added that there was “high demand” for buy-to-let mortgages through its subsidiary, The Mortgage Works.
The mutual said that prime mortgage balances now stood at £154.4bn, up from £149.8bn in 2021 and buy-to-let and legacy mortgage balances had grown to £43.7bn. This is up from £41.2bn in 2021.
Most of its loans were in London, followed by Central England with 19 per cent and Northern England at 16 per cent.
It said that 0.34 per cent of its residential mortgages were in three months or more of arrears, which is down from 0.43 per cent in 2021.
The report said that the current low level of arrears is “temporary” and is due to government support schemes and reduced opportunities to spend discretionary income during the pandemic.
Impairment provision balances have fallen to £187m from £317m in 2021, which Nationwide said was because of “improvements in the macroeconomic outlook and house price growth during the year”.
The lender continued that interest-only mortgage balances are 5.1 per cent of its prime residential mortgage, slightly down from 5.8 per cent in 2021. It reentered the prime market for interest-only lending in April 2020.
Kevin Parry, Nationwide’s chairman, said that the firm had emerged from the pandemic with a “thriving membership, strong profitability and enhanced financial strength” due to decisions made by the leadership team.
“These strengths will stand the society in good stead, as we transition to a new leadership team and respond to new geopolitical uncertainties,” he said.
He confirmed that Debbie Crosbie would take over from Joe Garner, who announced his departure in September last year, as chief executive on 2 June.
“I would like to take this opportunity to thank Joe, and David Roberts, my predecessor as chair, for their dedicated leadership of the society. The society has remained true to the values and ethos of mutuality, and we face into another period of uncertainty from a position of strength,” Parry said.
He added that it was “appalled by the devastating human crisis that is unfolding in Ukraine”, and that it has supported the Red Cross’s fundraising.
Parry concluded: “We will continue to plan for geopolitical risks and economic pressures arising directly and indirectly from the war in Ukraine, notably the rising energy bills and inflation, which are intensifying pressure on household budgets, which are already under strain.
“Given our financial strength, we are well-positioned to manage these impacts, well as to evolve our services to meet our members’ changing needs.”
