According to the latest financial results from Coventry Building Society, mortgage balances grew by £2.3bn in 2023, an increase from £1.4bn in 2022.
The mutual said that the year-on-year (YOY) growth in mortgages compared to a “broadly flat UK mortgage market”, and its market share is stable at three per cent.
The lender said that the new lending on owner-occupied homes made up 81 per cent of total new lending in the past year, a rise from 67 per cent in 2022.
The average loan to value (LTV) stood at 67 per cent in 2023, up from 65.3 per cent in 2022.
Coventry Building Society, which earlier this month upped rates, said that the number of loans advanced to first-time buyers came to 6,300, an increase from 5,400 in the year prior.
The report said that total mortgage assets came to £50.4bn, up from £48bn in 2022. This is made up of £30.9bn of owner-occupier loans and £19.4bn in buy-to-let (BTL) loans.
On the arrears side, 0.26 per cent of mortgages were more than three months in arrears, which the firm said was low historically and below the industry average of 0.91 per cent.
Coventry Building Society said that its profit before tax rose to £474m, which is an increase from £371m in 2022.
The company’s net interest margin (NIM) rose to 1.26 per cent in 2023 from 1.16 per cent in 2022.
Steve Hughes, chief executive of Coventry Building Society, said: “The impact of persistent inflation resulting in further base rate increases created volatility in markets and a fast-moving situation for savers and borrowers alike.
“In this context, we delivered a strong financial performance and growth ahead of the market. We concentrated on great value products, outstanding service, and putting the right foundations in place to support our future success by strengthening capital and investing in our digital capability.”
He added: “We proactively supported borrowers and improved our savings rates relative to the market whilst investing in our communities. These are important proof points of our mutual model – value, service, resilience and making a difference in our communities – all delivered by our brilliant and highly engaged colleagues.
“I’m proud of what’s been achieved as we continue to strengthen the Society for the benefit of current and future members.”
