In its half-year results, which cover the six months to 30 September, the lender said that the fall in completions reflected market conditions, which included delays in borrowers drawing down mortgages.
Lending to first-time buyers accounted for 68 per cent of its lending for home purchases, which is up from 47 per cent in the same period last year.
Pre-tax profit increased by 24 per cent year on year to £18.1m. West Brom said that this was driven by higher net interest income, fair value gains and revaluation gains on investment properties, which it said more than offset higher impairment of loans and advances.
Exposure to credit losses on residential loans fell, leading to a release of provision of £500,000, which was attributed to house price inflation in the first half of the year.
Group arrears rose slightly to 0.33 per cent, which is up from 0.31 per cent in March this year but below UK Finance average of 0.72 per cent.
West Brom working with borrowers in arrears
West Brom said: “We have been proactively working with borrowers in arrears to discuss the options available to them, particularly those on variable or tracker-linked products, or those coming to the end of their term.
“We want to ensure borrowers are supported through periods of financial hardship and come through such periods still owning their properties.”
It said that it is likely arrears levels will rise if “borrowers face longer term difficulties”.
West Brom said that over the past six months “political turbulence” has led to further economic pressures” which has partially led to withdrawal and repricing of many mortgage products.
“This has had the impact of worsening affordability challenges by increasing mortgage repayments and increasing the likelihood of borrowers entering arrears. We remain focused on supporting borrowers through periods of financial hardship,” it said.
West Brom: Strong capital position will support us through uncertainty
West Brom’s chief executive Jonathan Westhoff (pictured) said that it was “pleasing” to report a strong half-year performance, especially given the “challenging external environment”.
He continued: “Although more recently the tensions between monetary and fiscal policy which created such market uncertainty have abated, it is likely that a degree of uncertainty around the trajectory of the economy will remain.
“Our strong capital position will support us in navigating this uncertainty. Most importantly, we remain committed to balancing the needs of our borrowers and savers during this uncertain time and specifically working with borrowers to achieve outcomes that are supportive and in their long-term best interests.
“I am extremely thankful for the efforts of my colleagues and their determination to continually deliver the society’s purpose.”
