Commercial mortgage lending

Nationwide is one of the foremost lenders in the UK commercial property market with a loan book in excess of £18bn.

As at 4 April 2008, Commercial Lending represented 11% of total group loan assets and we intend to maintain the existing level of credit quality throughout this portfolio.

Our commercial lending activity is spread across a range of sectors including office, residential, industrial, retail and leisure. It supports the refinance and acquisition of properties throughout the UK and selected countries on the continent.

We are also the UK’s No 1 lender to social housing providers and became the first lender to commit over £8bn to the sector in 2007. UK registered social landlords provide affordable housing supported by governmental grants. This portfolio historically has carried a lower risk than our other commercial lending activities, and to date we have sustained no losses nor needed to raise any loss provisions against this portfolio.

Commercial lending also centres on the UK PFI/PPP sector, committing over £1bn to government sponsored infrastructure projects during the past 10 years. This includes the first and largest property portfolio transfer, the first courthouse, and the largest hospital.