Nationwide reports best ever year
Gross mortgage lending was up 31% to £28.1bn, it said, giving a market share of 14.9% of UK residential mortgage lending. Net lending meanwhile was up 52% at £9.9bn.
The society now accounts for around one in five first time buyer mortgages, its support for FTBs increasing by 37%, helping 58,100 borrowers to take their first steps into home ownership.
As well as attracting new mortgage customers, Nationwide continued to offer a loyalty discount on mortgage rates to existing mortgage customers wishing to move, switch product or take a further advance, as well as maintaining our Base Mortgage Rate at 2% above the Bank of England base rate. Estimates suggest that when compared with the standard variable rate charged by other major lenders, this has been equivalent to a saving of around £1,100 over the last year for our average BMR borrower.
Subsidiary The Mortgage Works did well too, gross advances accounting for £3.7bn (an increase of 12% on 2013) of its total mortgage lending, with net lending of £1.7bn, representing a market share of 16%.
Nationwide’s position was strengthened by a £4.9bn increase in savers’ deposits to £130.5bn, equal to a 12.1% share of the total savings market.
Chris Rhodes, Nationwide’s executive director, said: “The message that mutuality means better deals for members is clearly getting through.
“Nationwide has continued to increase the amount it lends, including providing one in five of all first time buyer mortgages over the last year. And our existing customers continue to benefit too.
“The combination of competitive products and our reputation for excellent customer service continue to ensure Nationwide stands out from its competitors, while at the same time supporting those in housing need; for Nationwide, it’s part of our mutual difference.”
However Nationwide also warned the London housing market may face a “natural correction”.
The mutual’s chief executive, Graham Beale, told the BBC this morning that there was already a “slowing down in the market place”.
Beale told the BBC’s business editor, Kamal Ahmed, buyers had started to baulk at ever higher house prices.
“At some point buyers just start saying no,” he added.