Nationwide hands out £10bn as loans boom
Wednesday 28 November 2012
The UK's biggest mutual said yesterday the Bank of England's Funding for Lending initiative had helped finance a boom in mortgage lending – but also warned of the damaging impact on savers.
Nationwide chief executive Graham Beale said the building society had advanced £10.2bn in home loans during the six months to September, 15 per cent ahead of a year earlier and the biggest sum for more than four years. Net lending – new loans minus repayments – of £3.2 billion was more than double last year.
Mr Beale said the lender had drawn down £509m under the FLS, which allows lenders to access cheap funding lines in return for growing their lending, helping 20,000 borrowers secure a home
The initiative is having an early impact on mortgage rates, but the glut of cheap funds is also hitting savers because lenders no longer have to compete as fiercely for deposits, the chief executive said. "Average savings rates are down by between 0.5 and 1 per cent," he said.
The mutual is also parking its tanks on the lawns of the rest of the banking industry after 51,400 switched their current accounts to Nationwide, more than double the number of switchers seen a year ago.
- 1 Ireland gay marriage vote: 'No' campaign appears to concede amid reports of 'yes' landslide victory
- 2 Purity balls: Girls in the US making virginity pledges as fathers vow to 'protect purity'
- 3 Picture of couple posing with beached dolphin 'that later died' causes outrage
- 4 16-year-old girl beaten and burned alive by lynch mob in Rio Bravo, Guatemala
- 5 Arsenal fan asks the Queen for tickets to the FA Cup final - gets a reply from Buckingham Palace
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
Report finds that Britain's wages are the most unequal in Europe
The day that Britain resigned as a global power
Almost a third of school pupils believe 'Muslims are taking over our country', study claims
Gay marriage 'Bert and Ernie' cake bakery found guilty of discrimination in Northern Ireland
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...