Household finances under strain as Nationwide warns of tough times ahead

Building society warns 'sluggish' economy, Brexit uncertainty, weak wage increases and rising inflation are hurting customers' finances

Household finances are under worsening pressure, according to Nationwide building society, which reported a fall in profits and warned of tougher trading conditions ahead.

Total mortgage lending slipped from 17.5bn to 16.7bn, largely because of a steep decline in loans for buy-to-let following the tax changes. But as lending for landlords has fallen, loans granted to first-time buyers have surged.

Related: Nationwide sounds note of caution over lending in run-up to Brexit