Nationwide Building Society is bracing itself for a rise in bad loans and a drop in mortgage lending as borrowers grapple with the impact of surging living costs and a long recession.
The UK’s second largest mortgage lender said that while few borrowers had fallen behind on loan payments so far, it had put aside £108m to cover potential defaults in the first half of the year. That compares with the £34m it released due to improving conditions during the same period in 2021, when the country was recovering from the Covid pandemic.
