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.
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...