Nationwide Building Society posted a surge in profits after Britain’s booming housing market saw it notch up its highest half-year mortgage lending for five years.

The mutual said new mortgage lending leapt 37 per cent to £14 billion in the six months to September 30 as Government initiatives such as Help to Buy fuel a housing market revival.

A rush of customers switching their current accounts also helped drive a robust first-half performance, with underlying operating profits up 155 per cent to £332 million. Nationwide opened more than 214,000 new current accounts.