Nationwide increased its gross mortgage lending by 2.5% year-on-year to £45.8bn, according to its preliminary full-year financial results.

For the 12 months ending 31 March, the mutual’s mortgage loan book expanded from £275.9bn to £286.3bn.

Nationwide said the growth was due to its support for first-time buyers, including a more higher loan-to-income lending, alongside a continued focus on customer retention.

Net lending fell by 35%, from £15.9bn to £10.3bn. Nationwide said the drop was due to unusually strong mortgage activity in March 2025 ahead of lower stamp duty thresholds coming into effect in April.

The average loan-to-value ratio for new lending remained unchanged at 72%.

Meanwhile, the proportion of mortgage accounts more than three months in arrears improved slightly, decreasing from 0.43% to 0.39%.

Profit before tax dropped from £2.3bn to £1.49bn after the building society made its Fairer Share payment to members. The previous year’s results also benefited from a one-off gain linked to the acquisition of Virgin Money.

Following £1.8bn in Fairer Share payments distributed last year, Nationwide will release a further £440m to members from 10 June.

Nationwide group chief executive Debbie Crosbie said: “Our growth in mortgages, retail deposits and personal current accounts is leading the market. And we delivered all this while continuing to set the standard for customer service and member value.

“This, combined with our standout branch network and mutual model, paves the way for even more value for our customers and members in the years ahead.”