Nationwide Building Society increases mortgage lending by 37% over half year to September 2013

Mortgages
British mutual financial institution Nationwide Building Society has achieved its highest six month lending period for five years and is now responsible for 15.4% of all UK residential mortgage lending, it revealed on Friday.

The building society reported gross mortgage lending of £14bn over the half year to 30 September 2013, an increase of 37% from £10.2bn reported for the same period in 2012/13. Nationwide said this means it is lending £13.2m every working hour.

Nationwide Group’s net lending, or total gross lending less mortgage repayments and redemptions made during the same period, was £5.6bm, a rise of 75% compared to the same period in the previous year. This figure is equivalent to a market share of 82.8%. The society has approximately 15 million members and is said to be one of the largest savings providers and a top-three provider of mortgages in the UK. It also provides current accounts, credit cards, ISAs and personal loans.

Over the half year, more than 30,400 first time buyers were provided with mortgages from Nationwide. This was an increase of 52% compared to the same period last year and accounted for more than one in five first time buyer mortgages in the UK.

A range of mortgage deals for up to 95% of the property value are available to the society’s members, which includes lending through its Save to Buy scheme. Customers who have held a Nationwide Save to Buy savings account for over six months and have paid in regular deposits of at least GBP50 a month can apply for a mortgage with a 5% deposit. There is also an opportunity to earn up to £1,000 cashback. This scheme was extended to home movers as well as first time buyers in 2013.

In addition, Nationwide said it actively participates in government schemes such as the Help to Buy equity loan schemes in England and Scotland; New Buy and MI New Homes in Scotland, aimed at boosting the supply of new properties; and access to home finance. It also offers the option of longer term tenancies to customers, a measure that is supported by housing charity Shelter.

Nationwide added that it aims to help 750,000 people move into a home of their own by 2017 under its ‘Your Home’ initiative, which ensures that the society is focused on housing for those who most need it, including first time buyers and people in affordable and social housing.

Chris Rhodes, Nationwide’s Executive Director, commented: “As you might expect from the UK’s largest building society, Nationwide has continued to focus on first-time buyers and on promoting the link between saving and access to low deposit mortgage deals. We have continued to reserve our best deals for our existing customers while giving additional help to first time buyers and those with small deposits, including through our Save to Buy scheme. “As a result, we have increased our gross mortgages lending by over a third and our net mortgage lending by 75 per cent compared to the same period last year.”

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