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Virgin Money pushes gross mortgage lending to £8.4bn – results

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  • 28/02/2017
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Virgin Money pushes gross mortgage lending to £8.4bn – results
Virgin reported a market share of 3.4% today with gross mortgage lending of £8.4bn in its 2016 full year results.

This represents steady year-on-year growth from the £7.5bn completed in 2015 and £5.8bn in 2014.

Net mortgage lending grew by 20% to £4.3bn, or a market share of 11%.

The bank reported an underlying profit before tax increase of 33% to £213.3m, from £160.7m in 2015.

Jayne-Anne Gadhia (pictured), chief executive at Virgin Money, said: “I am delighted to report another very successful year for Virgin Money in 2016. Our customer-focused strategy of growth, quality and returns continues to achieve and maintain outstanding customer approval ratings, excellent asset quality and strong financial performance.

“We continue to target high quality lending growth and the combination of strong new mortgage lending and improved customer retention resulted in 17% growth in mortgage balances to £29.7bn, significantly outpacing the market.”

Gadhia said the bank continues to target 3 to 3.5% of gross mortgage lending ahead of its ‘market share of stock.’

The lender won the ‘Best Lender Award’ at the Legal & General Mortgage Club Awards for the second consecutive year in 2016.

In November, Virgin made several changes to lending criteria for residential and buy-to-let lending on its retirement age and pension income requirements.

The bank’s maximum age policy remains unchanged, with the age limit for end of term at 75 years and 364 days.

The lender increased the maximum number of storeys allowed for flats and maisonettes across the UK to 10, with more flexibility in London. Where a building has more than 10 storeys, the maximum loan-to-value (LTV) will be restricted to 80% for all properties within the building.

 

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