Mortgage lending falls at Nationwide

There was a 40 per cent fall in the amount of mortgage lending last year at Nationwide, it has been reported by the BBC.

A tightening up of credit conditions led to the plunge in the number of mortgages awarded to borrowers.

The previous figure of £11.2 billion of mortgages agreed decreased to £6.7 billion and was concurrent with the general trend in mortgage lending last year in the UK.

Although the number of mortgages granted across the industry was at its lowest levels for more than three decades, Nationwide enjoyed a five per cent rise in its profits.

Graham Beale, the chief executive of Nationwide, commented: "Whilst the environment will remain challenging, the market now has a much more transparent and realistic view of the cost of risk."

Five year fixed rate mortgages are becoming increasingly more popular according to Abbey mortgages it has been reported by Money News.