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Newcastle boosts mortgage lending to £303m

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  • 27/07/2017
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Newcastle boosts mortgage lending to £303m
Newcastle Building Society increased its residential gross mortgage lending to £303m in the first half of 2017, up from £255m for the same period last year.

Net lending improved from £116m to £155m for the same period and the lender reported a continued reduction in levels of mortgage arrears of three months or more, down to 0.39% from 0.47% at the same point last year.

It said this was a result of strong credit risk and affordability assessments on the lending being carried out.

Pre-tax profit increased to £7.2m from £3.5m. The lender said this reflected a lower provisions charge and a one-off credit of £2.1m arising on the purchase of its Cobalt office.

Operating profits rise

Newcastle increased its operating profit by £0.1m to £6.2m, with higher income offset by increased costs of investment into the business to build future capability. These include investments into the branch network and property infrastructure, strengthening senior management, improving system resilience, and adding over 40 new roles to the organisation.

Meanwhile, savings balances increased by £120m as 10,000 new savers joined the Society.

Newcastle Building Society chief executive Andrew Haigh said: “We’ve made some very positive progress already this year and we’re proud of the milestones we’ve already achieved, both financially, and in delivering on the contract we have with the region.

“This extends beyond a commitment to the fundamentals of providing a robust regional building society and branch network, but also sees us driving growth to generate career opportunities for people across the North East, investing in our communities, and building an organisation the region can be proud of.”

Last month Newcastle lowered its buy-to-let income requirements and revised first-time buyer rates.

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