Together’s mortgage originations rise to £869m in quarterly update

This was higher than the £537m it generated during the same period last year. 

During the period, each month saw average loan originations of £289.7m, a 61.9 per cent rise on the same time last year. This was down by 1.4 per cent on the previous quarter. 

Originations within its commercial business totalled £714m, down from £729m in the previous quarter, while retail loans came to £155m, up from £152m. 

The weighted average loan to value (LTV) came to 62 per cent, which was flat on previous periods. 

Together said its arrears profile was “benign”, which was an indication of its “robust loan book quality”. 

It increased its impairment coverage slightly from 1.61 per cent in the last quarter to 1.63 per cent due to macroeconomic uncertainty. 

The net loan book grew to £5.7bn, up from £4.3bn a year ago. This was also a slight rise on £5.2bn in the previous quarter. 

The average LTV of its loan book remained low at 52 per cent, which was flat on previous periods. 

Together had an underlying net interest margin of 4.9 per cent, which was down compared to the previous quarter’s 5.3 per cent. It was also lower than the 6.1 per cent margin during the same time in 2021. It said this was because of “compression” during the period due to the extent and timing of rising interest rates. 

Its underlying profit before tax came to £34.7m, a 10.6 per cent decline on the previous quarter and a 12.4 per cent drop on last year. Together put this down to higher impairment charges. Its impairment charges came to £46.6m, up from £39.9m a year ago. 

Together: ‘Many customers looking to specialists’

Gerald Grimes (pictured), group CEO designate of Together, said the group delivered “another strong performance”. 

He added: “We continue to shape our business for the future, with a focus on optimising our distribution strategies, maintaining lending quality and sustainable pricing, and supporting our customers through this challenging economic climate. During the quarter, we raised or refinanced over £800m to further strengthen and diversify our funding, leaving us with significant facility headroom to support our growth plans. 

“The UK’s economic outlook has become increasingly uncertain with high levels of inflation and rising interest rates causing economists to forecast a prolonged recession. Against this backdrop, many more customers may find themselves underserved by mainstream lenders and look to specialists to help them to solve problems and realise opportunities. 

“We believe Together remains well placed to deliver on our strategy, to help increasing numbers of underserved customers realise their ambitions and to play our part in supporting the UK economy.”