Despite the fall in lending, the mutual saw its mortgage book grow 4.6% to £439.5m. Vernon Building Society said the 2025 housing market was subdued, and borrowers were “understandably cautious”, but it “performed strongly” against that backdrop.
This was attributed to its “competitive” products and “personal and practical” underwriting.
There was a slight increase in the number of accounts in arrears of 2.5% or more of the total mortgage, rising from 0.51% to 0.64%.
Its total assets also increased by 5.4% to £534m, which the mutual said was achieved despite the “challenging” environment.
Vernon Building Society’s profit before tax declined from £3.5m to £2.8m year-on-year, reflecting a “small hedging loss” of £200,000 compared to a £500,000 gain the year before.
Darren Ditchburn, chief executive of Vernon Building Society, said: “In a year when many households were still feeling the squeeze, we’ve continued to grow carefully, support more borrowers and offer competitive and good value savings products. Our lending growth shows there is real demand for a human, flexible approach that many larger lenders aren’t providing.”
“In 2026, we’ll continue to invest in the future of the society, from specialist mortgages and competitive savings accounts to enhanced digital services and community branches, all while staying true to our mutual values.”
