Fleet Mortgages nearly doubles lending to £782m in 2021

Fleet Mortgages nearly doubles lending to £782m in 2021

According to its latest annual results, it reported a pre-tax profit of £6.97m, up from £1.98m in 2020.

Its lending reflects its focus on professional buy-to-let borrowers, with a quarter of the business coming from portfolio landlords and half coming from limited company borrower applicants.

Purchase business grew from 28 per cent in 2020 to 42 per cent in 2020. The lender suggested that it was due to the “acquisitive landlord community” fueled by growth in tenant demand and the stamp duty holiday.

There has also seen a growth in business from areas outside of Greater London, particularly the Midlands and the North.

The lender added that its arrears remained in single digits, on a par with 2020 and which showed its loan quality was “very high”.

It also noted that it was the seventh consecutive year of no credit losses for the lender.

Fleet also completed four securitisations during the year under its London Wall and Canada Square securitisation programmes.

A spokesperson said that it would be Fleet’s former funders’ decision to securitise any further this year and when they do Fleet will “assist as usual”

He added that it was “most likely” that there would be securitisations in the future as there were unsecuritised assets and Fellet is still originating their remaining pipeline.

It was also fully acquired by Starling Bank in July last year in a £50m cash and share deal. The bank is now the sole fund of the lender.

Bob Young (pictured), chief executive officer at Fleet Mortgages, said that 2021 was a “ground-breaking year” for the business due to its acquisition by Starling Bank and “significant opportunities” it brought them.

He added: “We’ve always focused on the quality of our loan book, and the securitisations and the fact we had no credit losses again, shows that we are continuing to excel in this area. One of the reasons behind the Starling Bank deal was due to our risk and underwriting standards, and this continues to be a real focus for Fleet as we grow our lending volumes.”

Young said that the firm had entered 2022 with a “strong pipeline of business” and with the support of Starling it would focus on growing its proposition and operation, recruiting staff and pursue its lending ambitions.

He continued: “We want to maintain our service standards, supporting intermediaries in the buy-to-let sector, and ensuring landlords have access to competitively-priced finance to allow them to grow their portfolios.

“We believe 2022 is going to be another positive year for the buy-to-let sector and are looking forward to playing a full part in the intermediary lending space.”