Nationwide Building Society has closed its books to new borrowers as the number of banks lending to real estate continues to dwindle.
The bank, which was considered one of the most active second-tier UK property lenders after Royal Bank of Scotland and Lloyds, confirmed that it would continue working with existing customers but would not take on any new clients.
A Nationwide spokesman said: “The current outlook is uncertain and the UK and eurozone still face many challenges.
“So, with this in mind and, as a prudent lender, our lending focus at the present time is now positioned towards helping our existing customers to navigate safely through these difficult times,” he added.
He said that Nationwide would continue to “support and lend” to existing customers.
During the current financial year, from April 2011 to the end of March 2012, Nationwide will participate in around £500m of new lending. This figure includes deals that have already closed and are due to close by the end of the financial year.
The move comes just one week after it emerged that the National Australia Bank-owned Clydesdale and Yorkshire banks had both ceased new property lending.
Last year, both Eurohypo and Société Générale called time on UK property lending indefinitely.
Nationwide was listed by Savills in October last year as one of the 20 most-active lenders to UK property, working on asset deals as well as participating in corporate facilities with clients including Delancey and Grainger.
At the close of last year it was the lender on the £83m purchase of Aldwych House in London, which was bought by investment company GI Partners and Rowan Asset Management.
bridget.oconnell@estatesgazette.com
