Nationwide’s gross mortgage lending jumps to £44.7bn as market share grows

The mutual also saw its market share widen from 12.3% in 2024 to 16.2% this year. The lender said this was driven by a record £15.5bn of net mortgage lending through the Nationwide brand. 

Within its total gross mortgage lending figure, the Nationwide subgroup advanced £40.4bn in loans and saw its market share increase to 14.7%, backed by lending to first-time buyers. 

The average loan-to-value (LTV) bracket of new mortgage lending was 73%, up from 70% the year before, while its overall mortgage book had an average LTV of 56%, slightly up from 55% previously. 

Its arrears rate rose marginally from 0.41% of its accounts to 0.43%. Nationwide said arrears within its subgroup were stable at 0.4%, but Virgin Money had an arrears rate of 0.58%. 

The mutual closed the period with a mortgage balance of £275.9bn, up from £204.5bn previously. It attributed this growth to a record performance within the Nationwide subgroup and the acquisition of Virgin Money’s balances of £55.6bn. 

Nationwide also helped 120,000 first-time buyers over the period, up from 64,000 last year, which it said was more than any other lender in the UK. Its mortgage retention rate was also higher compared to its peers, at 80%. 

‘Financially stronger’ with Virgin Money 

The mutual noted that Virgin Money returned to a growth in mortgage lending following its acquisition. Collectively, the group completed £15.9bn in net mortgage lending. 

Nationwide said that since acquiring Virgin Money, it was now connected to a third of people in the UK and was the second-largest provider of mortgages and savings deposits. 

It recorded a gain of £2.3bn on completion of the acquisition. 

The mutual said the acquisition made it “financially stronger”, while Virgin Money’s business banking services broadened its offering and allowed it to support SMEs faster. 

The acquisition of Virgin Money included £17.1bn of business deposit balances and £9.5bn of business lending balances. 

Underlying profit falls at Nationwide 

Nationwide’s underlying profit before tax fell from £2bn to £1.85bn, with the Nationwide subgroup seeing a £195m decline in profit. It said this was partially offset by £44m in profits from the Virgin Money subgroup. 

Its statutory profit before tax increased from £1.7bn to £2.3bn, while its underlying net interest income rose from £4.4bn to £5bn, of which £842m related to Virgin Money. 

This was partially offset by a decrease in the Nationwide subgroup’s net interest income, attributable to the timings of base rate changes and a continued reduction in mortgage margins.

It reported a smaller underlying net interest margin of 1.55%, a slight fall from 1.56%. 

Debbie Crosbie (pictured), group chief executive of Nationwide Building Society, said: “Nationwide has had an outstanding 12 months. We returned a record £2.8bn in value to our members and recorded our highest ever year for growth in mortgage lending and retail deposit balances, and we remain first for customer service. 

“The Virgin Money performance was strong in the six months since our acquisition, with improvements in customer service and a return to growth in mortgage lending.”