View more on these topics

Nationwide sees drop in net lending to £3.3bn

Nationwide’s results today show that it has seen a drop in net lending from £5.6bn last year to £3.3bn as a result of its cautious approach in 2007.

It has also seen a decline in prime mortgage gross lending compared to last year, down from £13.5bn to £11.9bn.

But it says that its proportion of prime mortgage accounts in three months or more arrears is only at 0.31 per cent, significantly below the industry average of 1.06 per cent.

Its gross unsecured lending has been reduced to £0.3bn compared to £0.6bn last year. Asset quality remains strong with the proportion of personal loan balances 30+days in arrears reducing to 5.92 per cent, compared to the industry average of 10.00 per cent.

Nationwide’s specialist lending division – comprising of UCB Homeloans and The Mortgage Works – recorded gross lending of £1.2bn compared to £1bn in 2006. The division achieved net lending of £0.3bn, the same as the previous year.

Chief executive Graham Beale says: “Our long-standing prudent approach to lending means we have a mortgage book of outstanding quality; our arrears remain at very low levels and are less than a third of the industry average.

“We deliberately focus on quality lending rather than pursuing market share and we intend to maintain this prudent approach. The quality of our commercial lending and treasury portfolios is also excellent. We have no direct exposure to US sub prime lending resulting in an overall balance sheet of the highest quality.”


Transparency on trial

Early next year, the FSA will publish a discussion paper on the purpose and possible effects of greater transparency.

Professional planning

A fundamental shift in Government policy is needed to introduce greater flexibility in pensions and between tax wrappers if the mass-market advice market is ever to be served properly, says the Personal Finance Society. Speaking to Money Marketing at the PFS conference in Birmingham last week, new president Robert Reid said the Government and FSA […]

Market madness

Ever since the sub-prime crunch took hold in the Summer it seems predicting the market has practically become impossible to do – if that wasn’t the case before.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm