New lending records set at Leeds Building Society
Gross lending at Leeds Building Society, which has released its half year report, climbed to £2.5bn (30 June 2021: £2bn) while net lending rose to £1.2bn, (30 June 2021: £0.6bn) both record half-year amounts for the society.
The interim results for H1 2022 also report that nine of the society’s 10 biggest lending days ever occurred during the first six months of this year, leading to its highest number of completions in the first-half of a year.
Total society membership grew to 815,000, including 9,000 new members who chose the society when deciding to buy their first home.
Lending growth was supported by a corresponding rise in savings balances, with the increase topping £1bn, taking total savings balances to £16.4bn (31 December 2021: £15.25bn).
H1 2022’s strong lending performance delivered pre-tax profits of £146.5m (£70.3m 30 June 2021).
Richard Fearon, chief executive officer, said the business had achieved landmarks across its lending and supported its savers at a critical time.
He added: “Being mindful of our roots as a mutual, we’ve reaffirmed our purpose – to put home ownership within reach of more people – and future generations of first-time buyers are integral to our plans.
“To successfully deliver on that purpose means ensuring we offer a competitive savings range. We’ve consistently paid above the market average rate – which equates to an extra £66m in our savings members’ pockets.
Richard Fearon
“The value that we give to savers is especially important during a cost of living crisis, and we have also been considerate of the challenges facing our borrowers too.
“I’m proud we were able to attract so many new members but acknowledge the elevated demand for our savings products led to some long waiting times for callers. We didn’t always meet the high standards of service we strive for but I’m pleased that we’ve taken steps to address this and the situation has now returned to normal.”
The society says work is ongoing to increase online functionality and capacity for savings members to ensure its savings processes are simpler and quicker to use. It is investing in its branch network and has created another 65 jobs.
The business notes it continues not to charge mortgage arrears fees and that its arrears rates are still decreasing, which the society says reflects the responsible nature of its lending.
Fearon added: “Having reaffirmed our purpose and looked at how we deliver on this, we’ve taken the decision to withdraw from lending on second homes.
“We’ve put a great deal of thought into this and we don’t believe it’s compatible with our purpose.
“Second homes reduce the number of properties available to live in and we want to direct more of our efforts to other sectors, especially first-time buyers.”
He said the society expects interest rates to keep rising over the next six months and would continue to support its members amidst the cost of living crisis.
