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Connells Mortgage Services reports strong results for 2015

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  • 24/02/2016
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Connells Mortgage Services reports strong results for 2015
Connells Mortgage Services arranged 23% more mortgages in 2015 year-on-year, in what it described as ‘a record year’ for the division.

The mortgage arm of the estate agency and property services brand generated nearly £9bn worth of lending last year.

The number of first-time buyer applications grew by 17%, while remortgaging was up 32%, but it was buy-to-let purchase and remortgage applications that dominated activity, by 34% and 46% respectively.

In January this year Connells saw a 30% boost to the number of mortgage applications arranged compared to the same month a year earlier, with remortgages enjoying the biggest increase.

The firms said it had planned further investment and expansion in its mortgage advice division for 2016.

Adrian Scott, Connells group mortgage services director, said the mortgage brand was reaping the benefits of investment made for the Mortgage Market Review in 2014, with over 600 mortgage advisers now on board.

“We’ve started 2016 on a positive note with our remortgage business the key driver behind our strong activity. Remortgages rose to a third of our total business in the second half of last year and are up 82% compared to January last year.

“The increased interest in improving homes, rather than moving, and switching to a better deal may be in part due to the lack of housing stock which remains a challenge for our estate agency business. Nevertheless, the Connells Group’s New Homes business continues to go from strength to strength and with a stronger pipeline entering 2016, this adds further fuel to our mortgage business.”

Alongside strong figures in its Mortgage Services arm, Connells Group announced pre-tax profits of £62.5m for last year, a 19% rise on 2014 and an increase of 72% over the last three years.

It recorded over 8,000 new homes sales up 43% on 2014, while its land and planning business achieved 20% growth in revenues from advising on the sale and acquisition of residential land.

Connells Group CEO David Livesey added: “The housing market has not been without its challenges, characterised by lack of stock, so to end the year with strong profits and having sold more properties than 2014 and 2013 is a tremendous achievement.

“We entered the year with a substantially increased pipeline, and with a stronger housing market, more buyer and rental demand and a government that is supportive to house building and home ownership, we are well poised for a record year.”

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