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Mansfield BS’ new mortgage lending hits £87.7m in 2021

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  • 29/04/2022
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Mansfield BS’ new mortgage lending hits £87.7m in 2021
Mansfield Building Society’s new mortgage lending rose to £87.7m in 2021, which is up from £71.9m in 2020.

 

The firm’s figures show that new mortgage lending is returning to near pre-pandemic levels with gross mortgage lending in 2019 coming to £89.8m, and £94m in 2018.

In its latest annual report, the mutual said the annual growth of its mortgage book was £15.8m, equivalent to 4.6 per cent growth year-on-year.

The average loan to value of its mortgage book came to 36.9 per cent, which is down from 39.8 per cent in 2020.

Mansfield said the growth in mortgage balances was funded in the main by drawing from the Bank of England’s term funding scheme (TFSME), which provides funding to SMEs, along with an £3.1m increase in retail savings balances from its members.

It added that its mortgage assets were £363.4m in 2021, which is up from £348.2m in 2020. This reflects a growth of 4.6 per cent, which is up from 2.9 per cent in 2020 and up from four per cent in 2019.

The lender delivered a profit before tax of £2.9m, up from £1.89m in the year prior.

Mortgage accounts with over two months of arrears came to 0.2 per cent, which is slightly up from 0.15 per cent in 2020 and 0.09 per cent in 2019.

It said it supported 604 mortgage members with payment deferrals under the government scheme and most had returned to full payment.

Its management expenses ratio rose to 1.48 per cent in 2021, up from 1.36 per cent in 2020.

However, Mansfield said that part of this included a project to review its mortgage process. It added that this had already yielded “improved mortgage completion times” and further improvement would be delivered in 2022.

The lender added that it was “actively increasing” its mortgage book in buy to let, self-build and shared ownership and this would continue in to 2022.

The mutual also made a £200,00 investment in refurbishing its head office, which it said would create a “modern open plan mortgage centre” for colleagues.

Mansfield’s chief executive, Paul Wheeler (pictured), said it was focused on meeting the real-life needs of borrowers and investment in its mortgage operation would help deliver a step change in its service proposition.

He said: “At The Mansfield, we treat people as individuals and encourage our experienced mortgage team to consider each application on its merit rather than relying on automated credit scorecards.

“Feedback suggests that this is well-received by brokers and borrowers who are looking for a lender that takes a common sense view, particularly given the recent impact of the pandemic.” Wheeler said its “continued success” meant it could invest in the business, improve its service proposition and ensure the mutual could manage future headwinds.

“The team here have been outstanding in not only meeting the challenges brought about by the pandemic but also in delivering continued success throughout this challenging period. Whilst I’m proud of what we’ve achieved, more importantly, I’m excited about our future plans and what this means to our members, colleagues and broker partners,” he said.

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