This was higher than the £182m in new mortgage lending that Market Harborough Building Society completed the year before, and the £132m it lent in 2021.
The lender’s mortgage assets rose by a fifth, up on the 13.9% growth it reported in 2022.
The lender said it made a “conscious decision” to reduce mortgage lending in standard residential markets “where competition was fierce”, and “double down” on focusing on borrowers with more complex needs. Market Harborough Building Society said this strategy resulted in its mortgage book increasing by just under £100m.
It also saw a growth in demand for its bridging loans and holiday let mortgages.
Some 0.6% of mortgages were in arrears of three months or more, a marginal rise on zero accounts the year before.
The average loan to value (LTV) of its book was 50%, up on the average of 46% in 2022.
Market Harborough Building Society posted a pre-tax profit of £4.3m, slightly down from its profit of £4.5m in 2022.
The mutual said this was down on the previous year as it balanced the needs of borrowers and savers, by increasing the interest rate paid to savers more than the hikes applied to the standard variable mortgage rate.
The ‘critical role’ of brokers
It said mortgage intermediaries played a “critical role in the successful delivery of [its] lending business”, and it received a Feefo Platinum Trusted Service Award.
Market Harborough Building Society also pointed to its commitment to give brokers a minimum of 24 hours’ notice before withdrawing products, as the market went through a period of instability amid rising swap rates.
It also introduced a 0.3% proc fee for product switches.
Iain Kirkpatrick (pictured), chief executive of Market Harborough Building Society, said: “Market Harborough Building Society provided a beacon of light in the challenging market of 2023. We stayed true to our promises, made decisions based on what was right for members, brokers and their clients, and are proud to have delivered another record-breaking set of results.
“I’m grateful to our members, partners and to our dedicated colleagues for their continued support and trust in our society. I’m looking forward to what the future holds, including the move to our new head office at The Point in Market Harborough later this month, which will see our colleagues working together under one roof for the first time. I can’t wait to see the impact that even better communication and collaboration will have as we bring even more innovation to the market.”
