Building society hits £92m lending in first half

Chris White

Hinckley & Rugby Building Society achieved £92m of new mortgage lending in the first half of its current financial year.

In the six months to the end of May 2018 the £92m advanced contributed to a £35m growth in mortgage balances to £655m. The full year target for advances is £177m.

Net mortgages applications also totalled £92m, more than half way towards the full year target of £175m.

As well as winning new business, the mutual said that 74% of customers reaching the end of a special mortgage scheme stayed with Hinckley & Rugby, without it offering specific retention products.

The growth in lending was funded by net retail savings receipts of £19m, with the balance coming from existing liquidity, Bank of England funding facilities and the wholesale market. Popular retail savings products included fixed rate bonds, ISA accounts, notice accounts and business deposit accounts.

Hinckley & Rugby chief executive Chris White said: “Achieving a retention rate where almost three out of every four mortgage customers are choosing to stay with us shows how competitive we remain and how hard our staff work to provide an outstanding service.

“We’re on track to achieve the challenging targets we set for ourselves, against a backdrop of a very competitive mortgage market where rates have not risen despite the increase in the Bank of England base rate late last year.

“Whatever happens next to the Base Rate, and when that is, the mortgage market will continue to be one where we need to offer competitive products, manual underwriting that looks at applications in the round and excellent service to intermediaries and customers.”

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