According to its latest annual results, this continues a trend of growth as gross mortgage lending in 2019 came to £88m.
It continued that mortgage book growth in 2021 was 13.1 per cent, with it coming to £391m. The mutual added that mortgage book growth was 38 per cent over the last five years.
The mutual said the quality of its mortgage book had “remained strong” due to its “robust approach to underwriting”. Consequently, its impairment provision has fallen by £253,000 to £1.1m at year-end 2021.
The average loan to value (LTV) of Tipton and Coseley’s mortgage book was 46.9 per cent, which is slightly down from 47.8 per cent in 2020.
Around 35 per cent of its mortgage portfolio has an LTV up to 50 per cent, which is up slightly from 34 per cent in 2020.
The report added that around 20 per cent of its mortgage portfolio were in the 70 to 80 per cent LTV bracket, up from around 18 per cent in 2020. Around 19 per cent of its portfolio is between 60 and 70 per cent LTV, which compares to 18 per cent in 2020.
The mutual said at year-end, there were no mortgages with 12 months or more in arrears, which compares to two in 2020.
It added that its profit before tax was £2.7m, which was up from £1.5m in 2020 and £1.4m in 2019.
The mutual said the data suggested there would be a “slowdown in recovery” as inflation continued to rise and there was uncertainty about whether this was “long-term in nature”.
It added that this would have implications on the housing market, pointing to supply and demand rebalances and stretched affordability.
Consequently, the mutual said it expected a “more muted market with lower transaction levels” in 2022, so “intense competition” for mortgage business is expected to continue.
Richard Newton, Tipton and Coseley’s chief executive, said: “My heartfelt thanks go to my staff colleagues for their commitment to the society; they play a vital role in our success and continuously strive to provide great service to members, which is even more notable given the challenges of the pandemic.
“As we look to 2022, we remain committed to helping members own a home at all stages of life, and to help them save for the future.”
