The Hinckley & Rugby Building Society beat its lending target in the first half of its current financial year with the mutual achieving £96 million of processed mortgage applications, 37% ahead of the same period a year before.
A very busy six months from December 2015 to the end of May 2016 saw mortgage advances of £74 million, ahead of the £59 million achieved in the same period a year ago.
The half year included the Society’s two biggest months – April and May – for mortgage business since the credit crunch. The mortgage book grew by £6 million in May alone.
The half year closed with the mortgage book at £495 million and a pipeline of mortgage applications totalling £59 million. Hinckley & Rugby is now forecasting full-year advances of around £170 million, almost a third ahead of last year’s £128 million.
One of the drivers for the growth has been the mutual’s improved performance on retaining customers as they come to the end of fixed rate, discount and other initial periods of their mortgages.
The first half of the year saw retention rates consistently top 70%. Retentions were at 66% a year ago. Some months have topped 80% retention.
Customers can move to a new mortgage product with reduced fees and can self-select via a restricted access area of the Society’s website.
There are no mortgages in arrears by more than six months and the Society has no properties in possession.
Chris White (pictured), Hinckley & Rugby chief executive, said: “The half year results are hugely encouraging for the full year. Retaining ever more mortgage customers is great for the Society and for those customers.
“A strong pipeline of mortgage business is also good news for savers, as we need to fund this growth and have some very competitive savings products. All of our achievements, which we work hard for on behalf of our members, are thanks to our dedicated staff.”