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&#39Disastrous&#39 new loan figures for Nationwide

Mortgage brokers have branded Nationwide&#39s interim results “disastrous” after the society admitted that its share of the new mortgage market has collapsed since April.

Nationwide took only 0.2 per cent of the new mortgage market – from 9.1 per cent in the six months to October – after dropping discount loans from its range in February in a move aimed at retaining existing borrowers.

But brokers claim the strategy has backfired as Nationwide has lost the vast majority of its new market share while failing to persuade existing borrowers not to remortgage with rival lenders.

Despite claims from chief executive designate Philip Williamson that he is “delighted” with the results, brokers say they vindicate critics who have long claimed that Nationwide&#39s pricing policy would not work.

They point to its new competitive fixed-rate loans, which they believe have been introduced to try and stop the flood of borrowers looking to other lenders for a cheaper deal.

London & Country mortgage specialist David Hollingworth says: “These results are disastrous and absolutely pitiful for Nationwide. It is a dangerous game they have been playing and they have been caught out.”

Charcol senior technical manager Ray Boulger says: “I am not surprised but it could have been even worse. Nationwide has saved some face by introducing more competitive fixed rates which have given it slightly better figures than it otherwise would have had.”

Williamson says: “We have enabled both new and existing borrowers to enjoy the same deal and in doing so have taken a stand against the increasingly unfair industry practice of penalising existing borrowers to subsidise new business acquisition.”

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