Officials from the Nationwide Building Society have recently stated that the fall in house prices in the UK could continue over the course of 2009 and even into 2010. The building society, which has slashed mortgage lending like many other lenders since the onset of the global credit crunch, has said that the housing market is likely to remain subdued for the foreseeable future, which spells bad news for homeowners, who may lose their equity and even end up in negative equity.

On a brighter note the building society did add that the recent interest rate cuts applied by the Bank of England would help to ease the financial pressure on many homeowners in terms of their repayments, as it would mean that many people on variable rate mortgages would have far less to pay each month on their mortgages, thus leaving them with more disposable income.

The lender has cut back on lending over the past year, and has been focussing on lower risk lending given the financial climate.

An official from Nationwide said: “We understand borrowers’ concerns regarding the availability of affordable mortgages. Our principal focus at this time will be our existing members and in continuing to play our part in supporting the first time buyers’ market. We are committed to offering good value mortgages underpinned by a focus on prudent and sustainable lending.”

He also said that considering the difficult financial climate and turbulent money markets the building society had managed to maintain a solid performance.

He stated: “Our resilience proves that the building society business model can be particularly effective during turbulent market conditions.”

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