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19 March 2013
Nationwide Building Society is truly 'open for business' by accelerating mortgage lending by more than 40 percent in a year as it works towards its pledge of housing an additional 750,000 people by 2017.
Figures for 2011 and 2012 show how the Society has actually grown lending, unlike most major lenders. Gross lending increased from £12.1bn in 2011 to just over £17bn in 2012 (see Notes to Editors for full breakdown).
The world's largest building society, which has around 15 million members and is a top-three provider of mortgages in the UK, is calling for a push within the sector to reverse a reluctance to lend - despite Government funding designed to reinvigorate the market.
Nationwide has more than matched Government borrowing with mortgage lending in relation to the Funding for Lending Scheme (FLS), an initiative designed to provide banks with low cost funding to enable them to increase lending. While few mortgage lenders have increased lending levels since the scheme was rolled out last August, statistics show how Nationwide has bucked the trend by growing lending by £3.6bn against borrowing of £2bn.
The willingness and ability to lend is helping Nationwide move towards its 'Your Home' goal of helping 750,000 people move into a home of their own by 2017. This forms part of the Society's wider citizenship role in delivering a greater social impact, and ensures Nationwide is focused on housing those who most need it, including First Time Buyers and people in affordable and social housing (see here for more information).
Gross lending figures show that in the half-year between January and June 2011 - traditionally a less busy time following the quiet Christmas period - Nationwide's lending reached just over £5bn. That figure jumped to around £7bn in 2012 - an increase of 39%.
The second half-year of 2011 (July to December) saw around £7bn of lending, while the most recent figures for the second half of 2012 show that nearly £10bn was lent, representing a 42% increase.
Chris Rhodes, Executive Director for Retail at Nationwide, said: "Nationwide is very much open for business. We remain entirely focussed and committed on delivering the best possible service for our members. What we would like to see is a reinvigorated market, in which mortgage lenders who might be reluctant to lend - despite Government assistance - start lending rather than shrinking. The fact that the FLS is being run until January 2014 should hopefully act as a catalyst for others to take that important step forward."
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.