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Nottingham BS suffers H1 drop in mortgage lending

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  • 31/07/2015
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Nottingham BS suffers H1 drop in mortgage lending
The Nottingham suffered a 22.5% loss in gross mortgage lending in its half yearly results compared to the same period last year from £346m to £268m.

However, pre-tax profits at the group have seen growth during the first half of 2015, rising from £8.9m to £9.3m, while branch retail balances also increased by 7% to £1.6bn.

The Nottingham unveiled plans to offer a whole of market mortgage advice offering across its branch network at the beginning of last year, following annual results which showed the lender completed £693m in gross mortgage lending during 2013, a rise of 24% compared to the previous year.

Chief executive David Marlow said despite failing to grow its mortgage lending in 2015, the Nottingham had supported more customers with its whole of market proposition.

“Since 2010 the society has successfully grown its balance sheet by over 35%, one of the highest growth levels in the sector. As we entered 2015, the board assessed the current market environment, which saw an increasing number of mortgage products priced below 2% and decided not to continue with our sector leading growth levels,” he said.

“However, in a clear demonstration of the effectiveness of our strategy, while we have not increased our own lending so far in 2015 and our balance sheet remains the same size as at the end of 2014, we have helped over 30% more customers with mortgage advice and support through our whole of market offering in 2015 than in the first half of 2014.”

The Nottingham’s mortgage arrears of three months or more also fell to 0.34%.

Marlow added: “Overall, I am pleased with our strategic progress and feel confident that this good performance in the first six months will allow us to continue to grow and expand the business and deliver sustainable value to our customers through the second half of the year and beyond.”

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