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Virgin Money mortgage book shrinks as customer deposits grow

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  • 28/07/2020
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Virgin Money mortgage book shrinks as customer deposits grow
Virgin Money’s mortgage book shrank by one per cent quarter on quarter to £58.9bn in the three months to the end of June, the bank reported in its Q3 three trading update.

 

The group said this was a reflection of the closure of the housing market between March and May.

As of the 17 July, the bank has granted 67,000 payment holidays to homeowners, which accounts for around 20 per cent of all mortgage borrowers. Around 70 per cent of its borrowers have matured from their first payment holiday and approximately 31,000 payments remain in force.

Business borrowing increased by 5.7 per cent in the quarter, to £8.8bn, as business owners made use of the government’s support schemes. The bank has support around 25,000 business customers with lending arrangements.

Customer deposits increased in Q3 by 4.8 per cent to £67.7bn largely due to lower personal customer spending during lockdown and business customers maintaining higher levels of available cash.

The bank has so far lent £619m of bounce back loans and £248m of Coronavirus Business Interuption Loans as at end June

David Duffy, chief executive, said: “In a severely disrupted environment we are delivering on what we set out in May; to safeguard the health and wellbeing of our colleagues, customers and communities while protecting the bank.

He added: “We know that things may yet get more difficult for many of our customers, but we are determined to continue to support their needs where we can and to fulfil our role in the economic recovery.”

In it its interim financial report, published at the end of the March, Virgin Money said it had decided to put its rebranding project on hold.

The group wants to change Yorkshire and Clydesdale Bank branding to Virgin Money. Duffy said the group had now decided to restart the plans.

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