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First-time Buyers

First-time buyers make up a third of Leeds BS lending

Julia Rampen
Written By:
Julia Rampen
Posted:
Updated:
19/02/2013

Leeds Building Society increased mortgage lending by 35% in 2012 with almost a third of new lending going to first-time buyers.

New mortgage lending last year reached £1.65bn, compared to £1.23bn in 2011, while net residential lending more than doubled to a record £737m, the building society’s annual results showed.

Leeds chief executive Peter Hill said the increase in residential lending represented almost double the mutual’s market share: “Leeds Building Society is a profitable, well capitalised business and this gives us the opportunity to achieve our growth aspirations.

“We intend to increase lending further in 2013 and beyond, which will include more availability of higher LTV loans as we continue to support home ownership, the housing market and the wider economy.”

Drawing down £200m from the government-backed Funding for Lending Scheme supported Leeds’ aspirations to increase mortgage volumes, he said.

Should other lending from competitors stay the same, the increase would see Leeds move up two notches in the Council of Mortgage Lender’s list of lenders and knock the Co-operative off its 2011 position in 12th place.

The building society saw pre-tax profits of £52.4m – 4% higher than 2011. It no longer has any Treasury or Sovereign debt exposure to the troubled Eurozone countries of Portugal, Italy, Ireland, Greece or Spain.

Residential arrears on mortgages fell from 3.23% in 2011 to 2.89% in 2012. However, the average loan-to-value on new lending rose only slightly, to 56% against 51% in 2011.

The building society also saw net savings grow, meaning residential mortgage balances were are now funded entirely by members’ savings.

 


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