Following an increase in new mortgage lending last year of 6%, Leeds Building Society has promised it will be increasing its new mortgage lending levels by 30% in 2011.
Last year, the building society increased its retail deposits to a new record level, a move which saw its pre-tax profits rise by approximately one third to an impressive figure of £42.2 million.
The UK’s fifth largest mutual society has announced its new growth plans following a decrease in loan impairments. These growth plans could see an additional £1.3 billion of home loans this year.
The building society’s chief executive, Ian Ward, stated:
“We’re in a strong funding position, we’ve increased savings balances to a record £7bn and have raised wholesale funding, so we think it’s a sensible time to push out growth.”
According to Mr Ward, although the general UK mortgage market remains quite ‘muted’ the level of demand from UK borrowers has actually increased over the last few months. Thanks to new capital regulations from the FSA (Financial Services Authority) the ability to provide loans has been impaired for many mortgage lenders however, Leeds Building Society aims to take advantage of its own low cost base to use enticing deals to attract more borrowers and thus increase its own market share.
In other news, the UK’s fourth largest mutual society, Skipton Building Society has also shown a large rise in pre-tax profit for last year, which is also from a fall in loan impairments. Its Chief Executive, David Cutter, has made a similar announcement stating that the building society intends to strongly grow its business despite the buffering limitations from the mortgage regulator.
Those taking CeMAP training to become a mortgage advisor may well find these two Yorkshire building societies offering some attractive deals over the forthcoming year.