Hinckley & Rugby Building Society ended its half year with increases in mortgage applications, advances, savings and its biggest pipeline of mortgages for more than a decade.
The results to the end of May 2014, the first six months of the Society’s financial year, show mortgage advances up 16 per cent to £50.6 million (£43.5 million a year ago).
The mortgage pipeline stood at £40.4 million on May 31, also up 16 per cent on the previous year. Mortgage applications in the first half totalled £57.3 million, up 4.8 per cent.
Echoing the surge in mortgages was a growth in savings balances of £3 million, a turnaround from a net outflow a year before of £0.7 million. The Society’s Premium Saver and 120 Day Notice ISA savings accounts are currently very popular.
Increases were across the mortgage book’s range of products and LTVs (Loan to Values). There were double digit increases in residential mortgages below 75 per cent LTV and up through to 90 per cent, and in Buy to Let. There was single digit growth in the 91 to 95 per cent residential bracket, and in further advances to borrowers’ existing mortgages.
The fastest growing market segments were residential mortgages from 76 to 80 per cent LTV and at LTVs at or below 75 per cent. At the end of the half year the Society’s Buy to Let book stood at £74 million, 16.6 per cent of the total.
Arrears remain extremely low and there are no properties in possession.
Hinckley & Rugby chief executive Chris White said the Society had significant forward momentum: “We are on track to achieve significant growth in the full year and have the capacity to continue that growth into 2015.”
All the Society’s £106 million of liquidity is now represented by UK Government Stock or deposits with the Bank of England after the remaining stock of bank Certificates of Deposit matured in April.
Hinckley & Rugby’s stock of shorter term wholesale funding is down to just £12 million after £15.6 million was repaid in the first half. Another £4 million is expected to be repaid before the year end.
Chris White praised the Society’s staff for maintaining outstanding levels of customer service whilst responding to rising levels of business and new mortgage market rules: “Providing a great customer experience is at the heart of everything we do.
“So to regularly score perfect recommendation scores from customer surveys is excellent, especially through periods of change such as the Mortgage Market Review. Our MMR planning and execution was successful, to the benefit of our staff, customers and brokers.”
The first half of the year saw three further branches – Countesthorpe, Barlestone and Lutterworth – given the new Hinckley & Rugby Building Society branding. The final branch in the network’s overhaul, at Broughton Astley, will be converted in the coming months.