Britain’s largest mortgage lender has reported a 40% drop in value of its new mortgages, as the housing market dries up and the UK’s debt problem worsens. Nationwide had a total of £6.7 billion in mortgages this financial year compared to £11.2 billion the previous year, and has blamed “unprecedented market conditions” for the sharp drop.
Nationwide claim that this drop is controlled and anticipated, and that they expect to ride out the downturn without any serious mishaps. The society has said that just 0.36% of its 1.5 million mortgage customers had fallen at least three months behind in their mortgage repayments, compared to an industry average of 1.21%, though it may be too early to tell – the coming months may see a significant increase in the number of people falling into arrears with their mortgages.
While it seems likely that Nationwide will survive without any significant troubles, how their customers will fair remains to be seen. Nationwide have been more…