Nationwide increased mortgage lending by 20%

The Nationwide building society increased in mortgage lending to £32.6 billion

Nationwide increased in mortgage lending by 20% in the financial year to 4th April 20016 from £27.1bn to £32.6bn with profits increasing 9% to £1.377bn.

The society’s chief executive Joe Garner, who only joined from BT on 5 April, said he expected profit to “moderate” in the year ahead due to increased competition in the mortgage market, adding that the EU referendum will curb activity.

He said: “Uncertainty surrounding the EU referendum and the global economic outlook are likely to have some impact on UK economic activity in the near-term.

“Our central expectation is that if this uncertainty lifts and the global economy gradually strengthens, UK economic growth will move back towards its long-term trend rate of 2% to 2.5% per annum.

“The household sector is expected to remain a main driving force, underpinned by continued healthy gains in employment and rising real earnings.

“We expect the housing market to remain resilient, with any dampening of activity from modest increases in interest rates offset by a strengthening labour market and an under-supply of housing.”

Nationwide supplied mortgages to 1 in 6 first time buyers and remained the second largest buy-to-let lender.

Written by: Houseladder