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Cambridge Building Society sees mortgage lending fall

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  • 08/03/2018
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Cambridge Building Society sees mortgage lending fall
Cambridge Building Society's gross mortgage lending fell 9.3% from 2016, according to figures released ahead of its annual report next week.

 

The society has announced gross mortgage lending of £240m over 2017, down from the £264.7m total in 2016.

Mortgage Solutions understands that 811 loans were advanced in 2017 to a total of 1,379 borrowers.

Profit figures, however, will not be available until the annual report, scheduled for release on 14 March. In 2016, the Cambridge posted an after tax profit of £2.9m.

Despite the fall in gross lending, the Cambridge noted that the fastest growing group of borrowers was the over 60s.

The mutual removed its upper age limit for applicants in January 2016, and has since seen strong demand directly from older borrowers, as well as intermediaries with clients looking to remortgage or up their borrowing as they work to a later age or need a secure retirement income.

Over 2017, the number of new loans written to over 60s increased by 11%, while over the past four years the proportion of borrowers aged 60 or over grew by 25%.

 

Core purpose

Andy Lucas, chief operating officer at the Cambridge commented: “Our core purpose of helping people to have a home remains as strong now as it’s ever been. As well as continually finding solutions to support first time buyers, we recognise that there are other groups of all ages who also need our support.

“Our ability to look at each mortgage case individually was a key driver in making the decision to remove our upper age limit in 2016. These figures show what demand there is for borrowing at a later stage in life and with the average age of our applicants now hitting 50 for the first time, it’s a real indicator of the market changes lenders will need to continue to adapt to.

“We understand that there are many options available to older borrowers so we make sure our teams have an awareness and appreciation of what’s available across the market.  As a responsible lender where we identify a customer need we can fulfil we will, but if not we’ll point them in a different direction.”

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