Nationwide building society hit by collapse in buy-to-let lending

Nationwide’s mortgage lending plunged in the April to June quarter as buy-to-let borrowers stayed away from the market after the phasing out of tax relief on mortgage interest was introduced at the start of April.

Last year, landlords were hit by a 3% hike in Stamp Duty if they purchased more properties.

The building society said that net mortgage lending collapsed by 31% between April 5 and June 30 this year, from £3.5bn to £2.4bn.

Buy-to-let lending halved to £800m.

A spokesperson for Nationwide said the lender expected buy-to-let lending to remain broadly flat.

The fall meant that Nationwide, the UK’s second largest buy-to-let lender behind Lloyds, saw a 20% fall in profits, with its share of the mortgage market slipping from 15% to 13%.

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3 Comments

  1. 70GJ

    Perhaps they should withdraw their support for Shelter

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  2. Deltic2130

    Agreed. The whole sector is going to find themselves squeezed under this moronic government and their attacks. Since Shelter are keen supporters of these attacks, Nationwide should perhaps review their donations. I certainly wouldn’t be giving a single penny to someone who wanted my business stopped!

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    1. JMK

      And look at the tie-up between L&G and Shelter too.  L&G who will be benefiting massively through rising rents as they move into the Build-To-Rent sector with their rabbit-hutch homes.  Not only do Shelter support S24 which is causing rents to rise now but they also haven’t said a word about these tiny starter homes which are only 70% of the minimum space standard.

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