Mortgage News
Nottingham Building Society reports 8% annual drop in mortgage lending
Nottingham Building Society suffered an 8% drop in gross mortgage lending reporting advances of £651m last year compared to £706m in 2014, its annual results show.
Pre-tax profits increased by 15% to £20m which the society said had been boosted by its estate agency and mortgage advice subsidiaries.
The Nottingham offers its customers whole-of-market mortgage advice through its branch network. Last year it saw an 80% uplift in the number of customers using the service which sources mortgage products from more than 50 different lenders.
One of the society’s 2016 objectives is to expand its advice proposition by providing video link-ups in branch for customers to speak to advisers remotely and the introduction of online mortgage application options.
Chief executive David Marlow said the decline in mortgage lending was caused by a strategic decision taken by the society.
“It is always part of our challenge to strike the right balance between the competing needs of our savings and mortgage customers, particularly as mortgage rates continue to fall to new record lows.
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“We believe we struck the appropriate balance in 2015 by moderating our lending to £651m and growing our mortgage book by 3%. We are also taking a very strong mortgage pipeline into 2016.”