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Coventry records H1 mortgage growth of 25%

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  • 31/07/2015
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Coventry records H1 mortgage growth of 25%
Mortgage advances have increased to a record high of £4.2bn at Coventry Building Society in the first half of 2015, up 25% on the same time last year.

Mortgage advances totalled £3.4bn in the first half of 2014.

Half yearly results from the building society showed mortgage assets shot up by 13% compared to June 2014, with net lending reaching £1.8bn, equivalent to an estimated 16% mortgage market share.

Coventry’s statutory profit before tax increased by 14.2% to £100.4m in the six months to 30 June 2015, an uptick on figures recorded in the same half last year of £87.9m.

Impairment losses on residential mortgages fell by £0.4m due to falling arrears levels and rising house prices. Coventry said it continues to focus on low risk lending with the average loan-to-value of loans lent in the last six months at 63%, down slightly on the same time last year when the average was 64%.

Chief executive Mark Parsons said: “The majority of the Society’s lending continues to be in the traditional owner-occupied residential market and in particular we have increased our share of the low risk remortgage market.”

The Coventry’s share of the buy-to-let mortgage lending market has also increased. In the last five years, it has lent £10.5bn in this market.

Parson said a historically low interest rate environment was encouraging customers to seek alternatives to traditional savings accounts, including the buy-to-let sector.

 

 

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