Nationwide lives up to mutual heritage and delivers benefits for mortgage customers

Gross mortgage lending up by almost a third

28 May 2014

Nationwide’s full year results, announced today, clearly demonstrate the Society’s sustained support for the housing market, helping more people to achieve a home of their own:

  • Gross mortgage lending up 31% to £28.1 billion, a market share of 14.9% of UK residential mortgage lending
  • Net lending up 52% at £9.9 billion

Helping members to buy a home
In line with its responsible lending approach, the Society’s support for first time buyers includes its own Save to Buy product enabling customers to access 95% LTV mortgages after saving for at least six months. More than 45,000 members are currently regularly saving in this scheme prior to applying for their first mortgage or moving up the property ladder.

  • Nationwide now accounts for around one in five first time buyer mortgages.
  • Support for first time buyers increased by 37%, helping 58,100 borrowers to take their first steps into home ownership.

The Society is also an active participant in government schemes, including the Help to Buy equity loan schemes in England, Scotland and Wales, aimed at boosting the supply of new properties and access to home finance.

Mutuality benefits for those already in their home
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 (BMR) at 2% above the Bank of England (BoE) 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.

Supporting people to achieve a home of their own
As patterns of housing tenure continue to evolve, with greater numbers of people choosing to rent rather than buy, our subsidiary, The Mortgage Works (TMW), has continued to be a leading provider of high quality loans to the buy to let sector.

  • TMW gross advances accounted for £3.7 billion (an increase of 12% on 2013) of our total mortgage lending, with net lending of £1.7 billion
  • Representing a market share of 16%

As part of the Society’s wider Citizenship agenda, designed to deliver the greatest possible social impact, Nationwide continues to work towards supporting 750,000 people to move into a home of their own by 2017, whatever the tenure. This approach includes partnering with organisations that provide housing support for people most in need, and extends to Nationwide introducing its own initiatives, such as providing its buy to let customers with the option of offering longer term tenancies.

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.”

Notes to editors:

Nationwide is the world's largest building society as well as one of the largest savings providers 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, via the mobile app, on the telephone, internet and post. The Society has around 17,000 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.


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