Nationwide says mortgage lending down 40pc
Nationwide today said new mortgage lending dropped by almost half last year as the UK's biggest building society looked to weather the credit storm.
The society lent £6.7 billion on new mortgages in the year to April 4 - 40% below the previous 12 months - although underlying pre-tax profits rose 17% to £781.1 million.
Nationwide funded the lending entirely through retail deposits, which trebled to £9.1 billion as worried customers sought a safe haven for their cash.
The group said its mortgage arrears were less than a third of the industry average as its focus on lower-risk borrowers paid dividends.
But Nationwide also predicted lower house prices this year and added it was "difficult to predict" how long the tough current market conditions would last.
