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Nationwide profits dive thanks to clampdown on buy to let

Nationwide - the UK's second largest buy to let lender - has reported a 20 per cent drop in profits and admits its share of the mortgage market has dipped from 15 to 13 per cent. 

Its pre-tax profit was £322m in the three months to the end of June, down from £401m in the same period last year. Net mortgage lending was £2.4 billion in the quarter, down from £3.5 billion last year.

This collapse is chiefly down to a slowdown in the buy to let market caused by tougher mortgage rules imposed by the Bank of England and by fiscal clampdowns on the sector including the stamp duty surcharge on additional homes and the phasing out of mortgage interest tax relief - two disincentives to landlords to buy new investment properties.

Chief executive Joe Garner says: “It will be important for lenders to balance carefully credit supply with affordability as we seek to support the long-term interests of consumers in a responsible way through any potential economic slowdown ahead.”

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