This compares to £542m of new mortgage lending advanced in Q1 2016.
The bank’s interim management statement for the three months to 31 March showed lending to SMEs, homeowners and landlords has grown the loan book to £7.9bn in Q1; an increase of £450m year on year. Much of the growth came from buy-to-let lending agreed at the tail end of 2016, when the bank closed the year with a strong pipeline.
However, regulatory changes and tougher affordability tests for buy-to-let borrowers are expected to dampen loan growth in the second quarter. Despite the anticipated slowdown, Aldermore’s chief executive Phillip Monks said the bank remains on track to deliver loan growth within its target of 10 to 15% for the full year.
Year-on-year gross lending to business customers rose 11% to £303m, up from £272m in Q1 2016. Asset finance saw another area of strong growth for the bank.
Customer deposits increased 5% to £7bn from £6.7bn at the end of last year.
Monks added: “We have continued to grow our dynamic deposit franchise, providing accounts to individuals, SMEs and larger corporates. We have also increased our use of the Bank of England’s Term Funding Scheme, with the amount drawn now exceeding £750m.
“We’ve made a strong start to 2017 and remain on track to deliver the financial guidance outlined in March, as we continue to provide banking as it should be for our customers and strong, sustainable returns for our shareholders.”