Nationwide's mortgage lending fell 72 pc in 1H

LONDON: British lender Nationwide Building Society said Monday mortgage lending fell 72 per cent in the first half of its financial year, as home buyers were deterred by a crashing property market and mortgage rates were boosted by the credit crunch.

Net residential mortgage lending fell to 1 billion pounds ($1.6 billion) in the six months through Sept. 30, down sharply from 3.6 billion pounds a year earlier.

``Wholesale market conditions remain fragile and we expect the challenging economic environment in the U.K. to persist well into 2009,'' chief executive officer Graham Beale said.

House prices in Britain have plummeted over the last year as banks have reined in lending and prospective buyers have been cautious due to the looming recession. At the same time, mortgage rates have been pushed higher by the credit squeeze, as market uncertainty made lenders more cautious and their loans more expensive.