Aldermore said the weighty increase was driven largely by buy-to-let applications received towards the end of 2015, as the market scrambled to avoid the 3% Stamp Duty premium introduced on 1 April this year.
However, residential lending at Aldermore, which focuses on mortgages for underserved borrowers, suffered in the first six months of 2016 dropping to £243m from £281m a year earlier.
A spokeswoman for Aldermore, said: “We are pleased with the residential mortgages performance in the first half of the year as net loans grew by 9%, which is broadly in line with the net loan growth in the other areas of our business. Origination was robust at £243m, which we expected given our decision to take advantage of the market conditions in buy-to-let lending ahead of the April deadline.”
CEO Phillip Monks said despite being a UK-based business, Aldermore was still exposed to the wider economic effects of the EU referendum result.
“To date, we have seen no direct impact on our business but we continue to monitor the situation closely and have a proven ability to react quickly to a changing environment,” he said.
“We remain optimistic about our future. Building on our strong track record of delivery across our prudently constructed portfolio and with our experienced management team, modern systems and efficient operating platform, we remain confident that we will successfully navigate the challenges ahead as well as take advantage of the opportunities that change may bring.”
Underlying profit before tax at Aldermore was up by 45% to £63m in the first half of 2016, while the bank improved its cost-to-income ratio by 8 percentage points to 45%. Its net interest margin, which is the difference between interest income and the amount paid out to customers, remained the same since the same period last year at 3.6%.