Mansfield grows mortgage lending by 3.8%

Mansfield grows mortgage lending by 3.8%

Mansfield’s mortgage assets grew by 3.8 per cent in 2016, with almost a quarter (23 per cent) of new business coming from the self-employed.

The building society, which caters for underserved segments of the market, now has assets totalling more than £328m and made post-tax profits of £1.58m in 2016.

The lender’s continued growth follows a record-breaking year in 2015, when it posted balance growth of 9.5 per cent and lent out more than £70m to new borrowers.

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Chief executive Gev Lynott said the overall growth in 2016 reflects increasing demand for the society’s personal approach to underwriting and the strength of its product range. 

He added: “The industry has had to adapt to several changes during 2016, notably the regulatory change imposed by the European Mortgage Credit Directive and government intervention in buy-to-let. The persistent low interest rate environment and new entrants entering the market increased competition throughout the year. 

“However, we’ve been able to continue to grow our mortgage book by sticking to our strategy of serving segments that fail to be catered for by high-street competitors and by providing a flexible and pragmatic approach to meet individual needs. 

Lending to the self-employed was a particular highlight, he said.

“With total assets of over £328m and profit after tax of £1.58m, the society can reflect on another successful year and look forward to a similar performance in 2017.

“Mortgage intermediaries are a high priority for us and we’re focused on developing stronger ties with them in 2017. To this end, we’ve taken steps to grow our intermediary distribution through networks and clubs with the launch of Versatility, the society’s specialist lending brand, being the latest step in our support for mortgage brokers. 

“Feedback tells us that brokers using The Mansfield value our independent perspective and appreciate the care and consideration that our staff give to each and every case.”

Bob Riach, who owns Scunthorpe-based Riach Financial Advisers, commented: “We are getting more and more self-employed applicants. 

“Mortgages can be a lot more difficult to obtain for the self-employed – lenders look at them as a bit high-risk because income can fluctuate.

“Mansfield with do it with proof of 2 years’ trading for 90 per cent loan-to-value and 3 years up to 95 per cent. It compares well, and income is looked at by an individual – that is the plus. It is not just done online.”