Nationwide Mortage Lending Rose 14 Percent, Profits Up 34 Percent in Six Months

British mortgage lender Nationwide reported a record 14 percent increase in mortgage lending to £14.9 billion for six months ending September 30 and a 34 percent increase in profits to £802 million.

In a report by Reuters UK, the increase gives the mortgage lending firm a market share of 13.2 percent, making the company the second biggest mortgage lender in Britain, next to Lloyds. The group, which has 14 million members, also added 256,000 checking accounts. This is a 13 percent increase and it gives the company 6.9 percent market share. The company plans to bring that number up to 10 percent in the next five years.

According to Telegraph UK, the company's chief executive Graham Beale said this is the best ever six months of mortgage lending they had, which means that UK consumers found an alternative for big banks. However, Beale is not particularly happy with the new levy.

He said, "We are very disappointed that the Chancellor has decided to include Nationwide in the introduction of the tax surcharge on banking companies announced in the Budget."

Beale will be leaving the firm next spring, and will be replaced by Joe Garner. In a report by BBC, the firm expects downward pressure on its profit margins during the second half of this year until next year due to strong competition.

Beale said, "This has been our best ever half year of mortgage lending along with a strong inflow of savings and the opening of over a quarter of a million new current accounts." He said mutuals are not like banks. He added that Nationwide proves that people can succeed by doing what is right.

According to the building society said that the healthy growth of its employment and the string demand from investors have brought up the prices. However, this strong performance can't easily be sustained in the long term especially that the key measures for affordability is almost exhausted.