Nationwide saw its total gross mortgage lending grow by £1.5bn to £19.7bn in the first half of 2022, with net lending of £5.4bn, its latest results show.
Mortgage balances also increased to £203.6bn up from £198.1bn as it helped over 27,500 first-time buyers into a home of their own.
The society also saw underlying profits rise to £980m in the first half of the year, up from £850m in the same period last year.
But the building society warned that the ongoing cost-of-living crisis and rising interest rates could slow mortgage activity in the near term.
It also warned that arrears could also rise as mortgage payments become problematic for some homeowners.
Nationwide said: “The economic outlook remains highly uncertain, with increases in the cost of living and higher interest rates for borrowers putting further pressure on household finances and reducing consumer confidence.
“This is expected to lead to lower mortgage market activity in the second half of the year. These factors are fully reflected in the economic scenarios used within our credit loss provisions.”
