In its latest results, the mutual said its mortgage book had grown 15 per cent year on year to £504m.
It added that it had made pre-tax profit of £4.5m in 2022, which compares to £5m in 2021 but is up on the £2.7m in 2020.
The company continued that it had seen “high demand” for holiday let mortgages and “strong demand” for bridging.
The firm added that the credit quality of its mortgage book “remains good” and 98 per cent of its mortgage balance are up to date and not subject to forbearance.
A challenging year ahead for borrowers
It also noted that total arrears come to £5.5m, up on £5m pre-Covid. It said that at year-end, no loans were more than 12 months’ payments behind and there were no arrears or repossessions.
It said that it expected conditions to be “challenging” for some borrowers in the coming year, pointing to weakening house prices and economic stresses.
The firm said that it had increased its recourse and training to deal with a growth in borrowers in difficulty.
Buy-to-let help
MHBS continued that it had written to all buy-to-let borrowers to make them aware of potential EPC legislation which could mandate that rental properties have to have a rating of C or higher. It added that it was offering them a free EPC report.
MHBS’ chief executive Iain Kirkpatrick said: “It has been another fantastic year for MHBS and this strong set of results reflects our commitment to doing the right thing for both our savers and borrowers.”
He added that the strong financial results had allowed it to launch its Thrive Agenda, which pledges support to members, colleagues, communities and the environment.
Kirkpatrick said that it invested £2m into six brand new homes and it was working with a local housing association and homes had been given to those most in need in its area. He added that there were plans for other projects in the coming months.
“This is my first year as CEO of MHBS and I am excited about what the future holds as we build on our commitment to helping our members, colleagues and communities to thrive. I’m looking forward to meeting many of our members at our AGM,” he added.
