Nationwide lowers profits to arm itself for mortgage war – The Times

The mortgage price war intensified yesterday when Nationwide, Britain’s biggest building society, announced plans to sacrifice profits to remain competitive in home loans.

The society reported a 21 per cent fall in profit for the first nine months of the year to £703 million and warned that it was planning to cut margins further in the final quarter.

Net interest margin, a measure of the difference between the interest rate it pays on deposits and the rate it charges on mortgages, narrowed from 1.33 percentage points to 1.26. Joe Garner, 49, chief executive, said that it would narrow further in the fourth quarter, and added: “We are choosing to remain competitive and are expecting margins to moderate.”

Nationwide, which began in Wiltshire as the Provident…

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