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Coventry BS reports £2.4bn growth in mortgage lending in half-year results

  • 29/07/2021
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Coventry BS reports £2.4bn growth in mortgage lending in half-year results
Coventry Building Society has reported a £2.4bn growth in mortgage lending for the first six months of the year.


Compared to the same period last year, this was up from the £800m increase in lending the mutual reported. 

Its gross mortgage lending stood at £5.4bn in H1, up from £3.5bn last year.

The mutual said it took advantage of busy market conditions as it saw 5.5 per cent growth in its total mortgage loan book, which is now valued at £45.9bn. 

This included its return to the high loan to value (LTV) market, namely its relaunch into the 95 per cent LTV space in March. 

The number of loans provided to first-time buyers rose during the first six months of the year, totalling 3,800. This was compared to the 900 loans it provided first-time buyers last year. 

Its annual buy-to-let lending remained unchanged at £900m.  

Profit before tax was £124m for the six months to 30 June, compared to £22m reported in the same period last year. 

Coventry Building Society also revised its expected credit losses down from £48m in December to £39m in June. It said this was due to an improvement in the economic outlook as well as 98 per cent of affected customers returning to full mortgage payments after a deferral period. 

As of 30 June, the mutual has 400 borrowers on a Covid-19 related mortgage payment holiday, down from 34,000 the same time last year. 

Steve Hughes, chief executive of Coventry Building Society, said: “The mortgage market in 2021 has been incredibly strong and, by equipping our business development managers and service teams with the tools and technology to work with members, customers and intermediary partners, we’ve been able to meet the spikes in demand without compromising on the high standards of service that we are famous for. 

“We haven’t waited for the market to come to us either. By launching 95 per cent LTV products at the start of the year and regularly improving our rates and product features, we have supported the market in the best way we could – by providing competitive products in a timely way that meet the needs of borrowers.” 

He added: “Our financial performance has been strong, and we have continued to deliver industry leading service levels and outstanding colleague engagement. We will continue to take a prudent approach protect the long-term interest of our members as we grow and invest for the future. 

“I believe there is cause for cautious optimism as we transition through the pandemic and adapt to new ways of living and working.” 

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