The lender said this was partially due to “disruption” during the year, such as the mini Budget, which meant it withdrew products due to “inherent uncertainty in pricing long-term mortgage products”.
It noted that it returned to offering mortgages “relatively quickly” but the long-term impact was that mortgage prices had risen sharply with a typical two and five-year fixed rate now in excess of five per cent.
However, figures from the past few years show that gross mortgage lending for the year is above figures for 2019 and 2020 at £295m and £241.1m respectively.
The Cambridge’s mortgage book increased three per cent year-on year to £1.44bn.
It said at the end of last year there were four accounts with arrears of 12 months or more. This is out of a total of 9,216 mortgage accounts and compares to eight accounts last year.
These accounts have balances of around £400,000 and arrears of £40,000.
The mutual said that in late summer, two of its Rent to Home tenants each received more than £20,000, which they used as a deposit to allow them to buy their own homes.
Under the scheme they each rented a property with The Cambridge for three years and received back up to 70 per cent of the rent they paid to help them buy a home.
The firm said three new tenants have since moved into properties following a ballot in October.
The Cambridge’s pre-tax profit came to £17m, which is up from £11.9m in 2021. The firm said its profit before tax had grown partially due to “favourable market conditions” and was enhanced by a “strategy to broaden its mortgage offerings”.
It said “tougher economic conditions” this year were expected to lead to an “industry-wide increase in arrears and a slowdown in mortgage transactions”.
The mutual added that it “will not be immune to the deteriorating conditions”, and said it was “taking proactive steps to be able to support our members over this period”.
It continued that if it “operate[s] conservative lending criteria, designed to protect the society from large credit losses, an increase in impairments is nevertheless likely”.
The Cambridge’s CEO Peter Burrows (pictured) said: “The challenges of 2022 were many and varied, but I am delighted with all that we achieved as a team – for our customers, our team members, and the wider community.
“With interest rates and inflation both rising steeply over 2022, we remain committed to balancing the needs of our borrowers and our savers, whilst also investing in an organisation that supports a local workforce.
He added: “Our purpose has always been to help people have a home, by supporting those who couldn’t buy without our help and by working with our communities to help people have appropriate shelter and housing, while also meeting the needs of savers, by providing a safe place to save.
“I believe that our continued commitment to our loyal members, and our focus on excellent customer service, has enabled us to continue to thrive in challenging times.”
