Coventry posts record mortgage growth

Coventry posts record mortgage growth

Coventry Building Society has posted record mortgage growth, with mortgage assets up 13 per cent on June 2014, and record advances of £4.2bn in the first half of 2015, up 25 per cent on the same period in 2014.

The society said that record net lending of £1.8bn is equivalent to an estimated 16 per cent of mortgage market share.

It also posted a statutory profit before tax that was up by 14.2 per cent to £100.4m, compared to June 2014’s figure of £87.9m.

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Savings deposit balances also increased by 10 per cent on June 2014, with growth in the first half of 2015 at £700m. The society said that as at 30 June 2015, the weighted average interest rate on all savings balances was 2.02 per cent.

Coventry added in its results that ‘cost to mean asset’ ratio of 0.41 per cent - the same figure as for 2014 - remains the lowest reported by a UK building society, which it said was supporting its ability to offer consistently competitive interest rates.

Mark Parsons, the lender’s chief executive, said that the growth reflects a strong foundations on which the society is built and the ‘putting members first’ principles.

“Our low cost, low risk operations give us the financial strength to do the right thing for our members in terms of competitive products and excellent service. It is a positive cycle that supports in turn our strong profitability and the capital we need to maintain our growth.”

Meanwhile, Coventry for Intermediaries launched new five-year fixed residential mortgage, with rates starting from 2.35 per cent.