Nationwide have reported a 40 per cent fall in their mortgage lending levels as the credit crunch continues to have a grip on the housing market. The last year has seen Nationwides market share fall from 11 per cent to 7.1 per cent as residential lending dropped from £11.2 billion to £6.7 billion in the space of a year. Nationwides chief executive Graham Beale blamed the decreased market share on the building societys decision to narrow its portfolio given the volatility of the financial market at present.
Britains largest building society and second-largest mortgage lender revealed that 1.5 million new accounts had been opened in the last financial year, apparently representing a fifth of the money deposited in the UK has been deposited with Nationwide. Nationwide took in more money through savings - £9.1 billion than it lent to customers - £8.9 billion during the last financial year.
Nationwide, which is owned by its 13 million members claims it has not suffered from direct exposure to the US sub-prime crisis, though has been hit by a £102.2 million impairments charge following the restructuring of six investment vehicles.





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