This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-27599787
The article has changed 5 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| Nationwide warns of 'natural correction' in house prices | Nationwide warns of 'natural correction' in house prices |
| (35 minutes later) | |
| Nationwide building society has warned the London housing market may face a "natural correction" as it reported its best ever annual results. | |
| The mutual's chief executive, Graham Beale said there was already a "slowing down in the market place". | |
| It comes as Nationwide reported a four-fold rise in pre-tax annual profits to £677m, against £168m a year earlier. | It comes as Nationwide reported a four-fold rise in pre-tax annual profits to £677m, against £168m a year earlier. |
| Mr Beale told the BBC's business editor, Kamal Ahmed, buyers had started to baulk at ever higher house prices. | |
| "At some point buyers just start saying no," he added. | "At some point buyers just start saying no," he added. |
| Nationwide said it increased mortgage lending by 31% to £28.1bn in the year to 4 April on the back of the recovery in the housing market. | Nationwide said it increased mortgage lending by 31% to £28.1bn in the year to 4 April on the back of the recovery in the housing market. |
| First-time buyers | First-time buyers |
| The mutual said it had also approved 31% of all mortgages advanced within the government's Help to Buy scheme, designed to help first-time buyers onto the property ladder. | The mutual said it had also approved 31% of all mortgages advanced within the government's Help to Buy scheme, designed to help first-time buyers onto the property ladder. |
| But it added the number of mortgages it advanced to borrowers with a deposit of 10% or less of a property's purchase value - which would account for a majority of first-time buyers - remained low, at 2.4% of its total lending for the year. | But it added the number of mortgages it advanced to borrowers with a deposit of 10% or less of a property's purchase value - which would account for a majority of first-time buyers - remained low, at 2.4% of its total lending for the year. |
| On Tuesday, the British Bankers' Association (BBA) said mortgage lending in April hit a six year high of £12.2bn. But at the same time the number of mortgage approvals fell to an eight month low, suggesting fewer people are borrowing more as house prices continue to accelerate. | On Tuesday, the British Bankers' Association (BBA) said mortgage lending in April hit a six year high of £12.2bn. But at the same time the number of mortgage approvals fell to an eight month low, suggesting fewer people are borrowing more as house prices continue to accelerate. |
| And the most recent figures from the Office for National Statistics (ONS) showed average property values increased by 8% in the year to March to £252,000, down slightly from the 9.2% rise recorded a month earlier. | And the most recent figures from the Office for National Statistics (ONS) showed average property values increased by 8% in the year to March to £252,000, down slightly from the 9.2% rise recorded a month earlier. |
| State-backed Lloyds Banking Group recently announced it would restrict lending to four times a borrower's income for mortgage applications of £500,000 or more. There has been speculation that Royal Bank of Scotland may soon follow suit. | State-backed Lloyds Banking Group recently announced it would restrict lending to four times a borrower's income for mortgage applications of £500,000 or more. There has been speculation that Royal Bank of Scotland may soon follow suit. |
| 'Compelling alternative' | 'Compelling alternative' |
| Nationwide also saw an increase of £4.9bn in savers' deposits to £130.5bn, equal to a 12.1% share of the total savings market. | Nationwide also saw an increase of £4.9bn in savers' deposits to £130.5bn, equal to a 12.1% share of the total savings market. |
| Mr Beale, said the mutual continued to offer "a clear and compelling alternative to the established banks". | Mr Beale, said the mutual continued to offer "a clear and compelling alternative to the established banks". |
| Underlying pre-tax profits rose 113% to £924m in the year to 4 April from £433m a year earlier. | Underlying pre-tax profits rose 113% to £924m in the year to 4 April from £433m a year earlier. |
| New and existing customers opened more than 430,000 new current accounts, an 18% increase compared with a year before. | New and existing customers opened more than 430,000 new current accounts, an 18% increase compared with a year before. |
| Nationwide said it had increased its overall market share of current account customers to 5.5 million accounts or 6.2% in February - the most recent figures available - up from 5.7% a year earlier, helped by new rules that make it quicker and easier for people to switch their current account to another provider. | Nationwide said it had increased its overall market share of current account customers to 5.5 million accounts or 6.2% in February - the most recent figures available - up from 5.7% a year earlier, helped by new rules that make it quicker and easier for people to switch their current account to another provider. |