22 May 2013
Over the last year ending 4 April 2013, the Nationwide Group has increased its gross mortgage lending by 17 per cent to £21.5 billion, accounting for 15.1 per cent of all UK residential mortgage lending. This represents Nationwide’s highest ever market share. Over the same period, the Nationwide Group’s net lending was £6.5 billion, more than double that achieved in the previous financial year and equivalent to more than 100 per cent of total net lending in the UK. These results show that Nationwide has played a major role in supporting the UK housing market.
First time buyers
The Society has continued to focus on providing mortgages to first time buyers, both playing to its mutual heritage as well as helping to provide stimulus for the housing market. During the year Nationwide provided mortgages to over 42,000 first time buyers, a 75 per cent increase on last year. This means that one in every three of Nationwide’s new prime mortgages during the year was to a first time buyer and that the Society accounted for almost one in five of all first time buyer mortgages in the UK.
Save to Buy
Nationwide has also continued to provide mortgage deals for up to 95 per cent of the value of the property through its Save to Buy scheme. Previously only available to first-time buyers, from January 2013 Nationwide extended the scheme to home movers. Customers who save at least £50 a month in a Save to Buy account for six months or more can get access to a mortgage with a five per cent deposit and have the opportunity to earn up to £1,000 cashback. Nearly 30,000 Save to Buy accounts have been opened since launch in April 2011, with the average account balance being £3,270. It means thousands more potential home buyers are on their way onto, or up, the property ladder. The Society is also an active participant in government schemes aimed at boosting the supply of new properties and access to home finance.
While some lenders have unilaterally increased their back book mortgage rates for existing customers over the last 12 months, Nationwide has maintained its Base Mortgage Rate (BMR) pledge. This ensures that a significant proportion of its existing mortgage members have access to a rate capped at 2 per cent above Bank of England base rate. The Society estimates that the member benefit of its BMR pledge has been in the region of £800 million, equating to an average of over £1,100 annual net benefit for each individual mortgage account compared to the average back book rate charged by other lenders, which exceeded 4 per cent.
Chris Rhodes, Nationwide’s Executive Director, said: “The last year has seen us take a record share of the residential mortgage market and our net lending has more than equalled the net lending of the whole of the UK mortgage market. We have not simply focused on new customers but, as you would expect from a member owned organisation, we have reserved the very best deals for our existing customers. We have also given additional help to first time buyers through our Save to Buy scheme and we have now extended that scheme to home movers.
“As a member of Nationwide you don’t have to buy a new home, move or remortgage to benefit. Our BMR borrowers have been sitting on a rate of 2.5 per cent and we believe that this has delivered £800 million of benefits to these members over the last year.”
Please note that opening a Save to Buy savings account does not guarantee acceptance for a Save to Buy mortgage. You must apply for the Save to Buy mortgage between 6 months and 3 years of opening your Save to Buy savings account. As with all mortgages, our Save to Buy mortgages are subject to underwriting and criteria which can change over time.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Notes to editors:
¹Net lending is total gross lending less mortgage repayments and redemptions made during the same period. Nationwide Group net lending reached £6.5billion, which exceeded overall UK market net lending of £6billion.
Please click here for an infographic detailing Nationwide’s mortgage performance. A jpg version of this is available on request.
Nationwide is the world's largest building society as well as the second largest savings provider and a top-three provider of mortgages in the UK. It is also a major provider of current accounts, credit cards, ISAs and personal loans. Nationwide has around 15 million members.
Customers can manage their finances in a branch, on the telephone, internet and post. The Society has around 16,000 employees. Nationwide's head office is in Swindon with administration centres based in Northampton, Bournemouth and Dunfermline. The Society also has a number of call centres across the UK.