Mortgage lenders have fought hard in a competitive market to gain customers and go about making their business viable. However, with historic low interest rates and a stalling housing market, the business of lending hasn’t been profitable for at least one major lender. Nationwide Building Society, Britain’s second largest mortgage provider posted a decline of 4% in half-year profit.

Previously in the year, Nationwide reported a decline in profits of 18% for the first quarter of 2017. Annual profits declined by 23% from last year.

Despite the decline in profits, Nationwide reported their capital strength was at an all time high. This is the market indicator of a financial institution’s resilience against economic market strains. They also reported that in the six month period of reporting they had helped 39,500 first time buyers onto the property ladder.

Joe Garner, chief executive of Nationwide, commented, “We're prepared for the possibility that intense competition combined with declining consumer confidence may lead to a moderation in gross lending and market share in the second half of the year.

“The second half may bring tougher trading conditions, but we remain well placed to stand by our members in these uncertain times. Nationwide is financially secure and will continue to promote the long-term interests of both the Society and our members.”

Homeowners and home buyers should take notice of lenders struggling in the market. It could be an indicator that the lowest and cheapest borrowing deals are soon to disappear. There will still be attractive deals, just not the ones that have been around for so very long.