According to its latest financial report, Suffolk Building Society processed 861 mortgage applications in 2023, with 702 completions. This compares to 1,251 applications and 670 completions in 2022.
Residential lending made up 77% of mortgage completions, which covered 34 self-build cases, down from 57 in 2022, and lending over £17m to self-building. This is a fall from £20m.
In November, the mutual re-entered shared ownership, and noted that 11 shared ownership mortgages completed during the period.
Suffolk Building Society said that it had retained 69.4% of existing mortgage business, which, along with new business, led to a mortgage balance of £727m in 2023. This is up from 63% in 2022.
Mortgage balances rose 11.1% year-on-year (YOY) to £72.6m.
The mutual’s profit before tax stands at £4.1m, which is down from £5.9m in 2022.
Net interest margin (NIM) came to 2.2%, which is in line with the figure from the prior year.
Arrears fall in 2023
The company said that there were five arrears cases of 12 months’ payment or more in 2023, which is down from 11 in 2022.
There were 19 arrears that were equal to 2-12 months of payments, down from 17 in 2022.
The total amount outstanding in these cases was £606,000, which is a fall from £1.7m in 2022. The total amount of arrears was £29,000, a decrease from £226,000 last year.
Suffolk Building Society said that there were 26 cases of borrowers entering into short-term interest-only concessions or extending their mortgage terms as part of Mortgage Charter measures.
The company added that there were two properties in possession and there were 38 mortgage accounts in forbearance, equal to 0.88% of its total mortgage book.
2023 delivered ‘strong mortgage performance’
Richard Norrington (pictured), CEO at Suffolk Building Society, said that 2023 saw a “strong mortgage performance” despite the year being “dominated by continuing inflationary pressure, rising interest rates and the cost of living”.
He continued: “As the cost of living has become a huge concern for many, supporting members has become even more important. We continued to balance the needs of both our savings and mortgage members when making interest rate decisions.
“We were also one of the first building societies to sign up to the government’s Mortgage Charter. The charter supplemented many of our measures already in place, and meant customers could clearly understand the options that are available to them.”
Norrington continued: “Ending the year on a strong financial footing ensures the society can grow and be sustainable for the future; it can invest for the benefit of its members and pursue ambitious environmental and social objectives. In 2023, the society donated £45,000 to four key charity partners.
“We continue as a fiercely independent mutual society, with both digital and face-to-face customer service at the heart of our savings model. We also have an excellent reputation and positioning within the intermediary market for mortgages.”
