Newcastle gross mortgage lending up 46% to £496m

Andrew Haigh

Newcastle Building Society said its gross mortgage lending rose 46% to £496 million in 2016 and and net lending increased from £10 million to £195 million.

Newcastle said profit before tax rose by 50% to £8.1 million.

“This reflects higher levels of lending alongside greater retention of existing mortgage customers, and can be attributed to investment in distribution, expanded product range, and improved online systems capability for brokers.

“The society helped more than 700 first time buyers get a foot on the property ladder in 2016, and alongside that achieved record low arrears figures across its mortgage book.”

The society said its capital ratios continued to improve, with Common Equity Tier 1 ratio moving from 13.6% to 14.3% and Tier 1 capital ratio increasing from 15.4% to 15.9%.

It said the majority of its liquidity is invested in AAA/AA rated assets in the UK.

Newcastle CEO Andrew Haigh said: “We are very pleased with the progress we made last year.

“The increase in profit reflects the impact of the investment to date and the hard work of our staff, and enables us to continue investing for the benefit of our members and the region as a whole.

“From great employment and development opportunities for local people, to continuously improving digital and branch customer service, and our commitment to growing our community support both through funding and staff volunteering, Newcastle Building Society is connecting people in the North East with a better financial future.”