According to Leeds Building Society’s financial report, first-time buyers accounted for around 47% of all new mortgages in 2024.
The firm added that in its Income Plus range, it allows first-time buyers to borrow an average of £66,000 more on 95% loan to value (LTV) compared to a standard mortgage.
The mutual said it had been its “most successful mortgage product launch ever, demonstrating the potential benefits for greater flexibility in lending rules”.
The report found that market share of new lending came to 2.3% in 2024, which is up from 1.9% in 2023.
Leeds Building Society’s mortgage asset balance came to £24.4bn, a rise from £21.8bn.
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The level of mortgage arrears fell from 0.61% to 0.51% year-on-year, which the firm said was due to the “robustness of affordability testing and lending criteria”.
The firm said its partnership with Experian helped boost credit scores for over 4,100 mortgage applications, 64% of which were first-time buyers.
Leeds Building Society’s underlying profit before tax came to £187.5m, which is a rise from £181.5m.
This is the fourth consecutive year of record-breaking results, with new highs in mortgage lending, savings and total membership.
Total membership came to 991,000 members, the highest in its 150-year history, and total savings balances reached £24.5bn.
Leeds BS’ CEO calls out cash ISA changes but backs relaxing of mortgage lending rules
Richard Fearon, Leeds Building Society’s CEO, said that as the mutual reached the milestone of its 150th anniversary, it “offers the opportunity to reflect on how far our society has come”.
He continued: “We were helping people onto the housing ladder before the invention of the telephone and the light bulb, and our purpose remains as relevant as ever today. It’s a real privilege to be announcing record-breaking results for a fourth successive year, and I’m incredibly proud of the progress we continue to make to deliver our purpose and support members.
“Our total membership reached an all-time high at the end of 2024. Mortgage completions broke records and savings balances are higher than they have ever been. Interest payments above and beyond the average market rate totalled £175m, as we continue to demonstrate value to our members.”
Fearon said it continued to see members opening cash ISAs, with ISA account openings four times higher than 2020 levels.
“Building societies account for about 40% of the cash ISA market and we’re opposed to the recent suggestions to cut the amount people are allowed to save within these accounts. It’s naïve at best, or deliberate misinformation at worst, for fund managers to say money saved in cash ISAs is dormant.
“We use it to fuel our mortgage lending. If you significantly reduce that funding, mortgage rates would become more expensive for borrowers. At a time when the cost of living continues to impact millions of people, the last thing that people need is to have greater pressure on their mortgage bills,” he added.
Fearon said the mutual was continuing to “push for real change in the housing market” and it would continue to find ways to support first-time buyers, including through its Income Plus and Reach mortgages.
“There is more we can do here to help first-time buyers, and I’m supportive of the government’s proposed plans to relax lending rules, as the cap on loans over 4.5x income has become a real obstacle to us providing more support,” he noted.
“Our underlying profit of £187.5m resulted from record trading performance in a turbulent market for both savers and borrowers. As a mutual, we don’t have any external shareholders to pay dividends to, and our strong financial performance allows us to invest significantly in our business. We opened a new branch, refurbished and relocated others and improved our online services, allowing members to better engage with us in the way that works best for them.
“Our achievements in 2024… show the society at its best, reflecting the talents of our colleagues and the collaborative culture they foster. We’re well-positioned to deal with any challenges that lay ahead and it’s clear that our nearly one million members continue to recognise our value. We’ll continue to invest in supporting our members and deliver our purpose, which will remain unchanged, as it has for 150 years, because everyone deserves to have a place to call home,” he concluded.
