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Ecology BS’ 2021 gross mortgage lending grows 77 per cent to £69.4m

  • 04/04/2022
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Ecology BS’ 2021 gross mortgage lending grows 77 per cent to £69.4m
Ecology Building Society's gross mortgage lending grew by nearly 77 per cent from £39.3m in 2020 to £69.4m in 2021.

According to the mutual’s latest annual report, total mortgage assets increased to £194.1m, which is up from £158.6m in 2020.

The growth in lending was partially attributed to  a 14.6 per cent increase in the number of members for the year ending 31 December 2021, its 40th year in business.

The company’s profits before tax almost doubled from £648m in 2020 to just over £1.28bn in 2021.

In 2021, Ecology lent over £69.4m to 371 sustainable properties, with the majority of lending going on new builds at 246 properties, then 52 renovations and 39 conversions. This compares to 230 properties in 2020.

The lender added that overall arrears levels remained low in 2021, with no cases in possession or 12 months or more in arrears. This is the same as in 2020.

It continued that there were three individual impairment provisions made in 2021, with outstanding balance leading to a fall of individual provision of £305,000. This is down from five in 2020 with outstanding balance of £361,000.

Ecology added that 47 per cent of its mortgages were secured on a property had an EPC rating. It explained that some properties did not have an EPC as the purchase pre-dates the requirement, or the EPC assessment had not been done or the property was still under construction.

The mutual projected ending the year with a 22.3 per cent growth in mortgage assets, supported by the society’s enhanced capital position as a result of the Core Capital Deferred Shares (CCDS) capital raise in 2020.

Ecology said it was one of the first building societies to provide comprehensive reports on its climate-related disclosures via the Taskforce on Climate-related Finance Disclosures framework. The society offers a range of savings accounts which fund mortgages aimed at properties and projects adopting green building practices, improved energy efficiency and promoting a sustainable economy.


Results show ‘outstanding year of sustainable growth’

Ecology’s chief executive, Paul Ellis (pictured), who is stepping down at the end of April after 40 years at Ecology, said the results showed an “outstanding year of sustainable growth” for the mutual, which was indicative of its strength of its lending model and the important of finance having a positive impact on people and the planet.

He said: “2021 was a special year for Ecology. We have more than 12,000 members, that helped to shape our new 2030 strategy setting out how we will realise our ecological mission for the remainder of this decade. Members’ money is delivering a real contribution to tackle the climate and ecological crisis as well as supporting our agitation for system change.

“Looking ahead our pipeline of lending for low impact homes and financial position gives us a firm foundation to continue to invest in our services during 2022 and beyond.”

He added that he was leaving Ecology “well assured” that it was in “very capable hands” of people who wanted to build the mutual’s legacy and be a “leading example of the transformative power of ethical finance”.

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