Drop in mortgage lending levels for Nationwide
Blaming the drop on ‘unprecedented market conditions’ officials from the Nationwide Building Society recently reported that the lender suffered a fall of 40% in mortgage lending levels last year. Many lenders, including the Nationwide, were forced to rein in their lending levels last year after the global credit crunch set in, and these tighter credit conditions have contributed to the lower lending levels seen last year by Nationwide.
For the previous financial year Nationwide appears to have enjoyed healthy mortgage lending levels, which amounted to around £11.2 billion, and resulted in the lender taking an eleven percent share of the mortgage market. However, for the financial year leading to 4th April, mortgage lending levels for the Nationwide plummeted to £6.7 billion, and its share of the mortgage market went down to just over seven percent.
Many other lenders have also seen their mortgage lending levels fall, and the Council of Mortgage Lenders has recently stated that mortgage lending levels continue to be subdued. However, April did see a slight rise in overall mortgage lending according to a recent report. An official from the Nationwide said that the effects of the global credit crunch were likely to continue over the course of this year and possibly into next, with house prices also continuing to fall over the course of the year.
He added: “The society is conscious of the difficulties faced by consumers in these disrupted market conditions and we are playing our part to help by continuing to focus on offering mortgages that meet the needs of both existing members and first-time homebuyers.”
Recent news:
- Five year fixed rate mortgage now more popular
- Borrowers could benefit from advice on mortgages
- Base rate stays the same for June
- Asda may enter mortgage market
- Government rescue plan may take time to take effect
- Seller experiencing problems with home buyers
Related Posts
30 percent fall in mortgages in 2008
According to officials from the Council of Mortgage Lenders, mortgage lending over the course of last year fell by around 30 percent, taking it to its lowest levels since around 2002. »
Slump in lending levels fuelled by credit crunch
According to a recent report the global credit crunch that has swept across the financial markets in the UK has resulted in a slump in lending levels in the mortgage markets, with a 17% year on year drop indicated in mortgage lending levels. In March the amount lent out in mortgage loans came to around £26.3 billion, and this was a drop of over £5 billion compared to just one year earlier, before the credit crunch took a hold in the UK.»
Could shared ownership be the answer to your property dreams?
For many would be first time buyers the dream of homeownership has never been quite within reach. For many years the price of property in the UK was so high that most first time buyers did not have the income to get the mortgage that they needed, despite the fact that many lenders were increasing income multiples to as high as six or seven times the income. »
Abbey takes huge slice of mortgage market
The Spanish owned high street lender, Abbey, as recently reported that it has increased its share of the UK mortgage market dramatically over recent months, and this has resulted in the lender becoming the number one mortgage lender in the nation, overtaking the Halifax. Since the onset of the global credit crunch many UK lenders have struggled to raise finances to fund their mortgage lending operations, but because Abbey is Spanish owned it has been able to turn to European sources for funding, increasing its liquidity.»
Fall in lending to businesses according to central bank
The Bank of England has recently reported that the level of lending to businesses in the UK has been falling. The figures were released in the central bank’s recently released Trends in Lending report, and showed that in October there had been a slightly bigger fall in lending to businesses than in the previous month.»
One Comment
Leave a comment »Leave a comment
More from Mortgage News category
Ads and sponsors
[...] Drop in mortgage lending levels for Nationwide [...]