Building society triples profits after intermediary move

Having decided to only accept mortgage business through the intermediary channel as a result of the Mortgage Market Review, Dudley Building Society has tripled its pre-tax profit to £556,000 for 2013/14.

The society only serves its local communities, the Black Country and West Midlands area.

Jeremy Wood, chief executive, said he was pleased with the outcome of offering its mortgage portfolio solely through the intermediary channel.

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He said: “As we believe that the only genuine way to ensure that clients receive the right service is through whole of market advice from a regulated intermediary, our products have to measure up well against the rest of the market.”

Improvements in profitability were also put down to increasing mortgage volumes, progress in reducing the amount of mortgage accounts in arrears and an improvement in the society’s margin.

“Mortgage rates have continued to remain low throughout the year, which has seen our lending increase by 14 per cent to £31m,” added Mr Wood.