Hinckley & Rugby mortgage advances up 14%

The Hinckley & Rugby Building Society grew its mortgage advances 14% to £128 million in the 12 months to the end of November 2015.

This was up from 2014’s total of £112 million.

The 14% annual rise outpaced the 2013-14 growth of 8%.

The Society’s current financial year began with a 7.8% growth in its pipeline of mortgage business, which stood at £37.3 million (compared to £34.6 million a year previously).

A fifth consecutive year of growth in the net interest margin saw it rise from 1.04% to 1.10%. Net interest income was up from £5.72 million to £6.16 million.

Profit before tax and the FSCS (Financial Services Compensation Scheme) levy was £758,000, up from 2014’s £611,000. Profit after tax and the levy was £320,000, up from £185,000 a year before.

Retail deposits increased to £487.4 million – equal to 103% of total loans outstanding. There was growth of £21.4 million in the mortgage portfolio to £475.4 million, including £85.5 million of buy-to-let mortgages (£77.8 million in 2014).

There was a further reduction in the number of borrowers in arrears with their monthly mortgage repayments by one month or more to 11 (23 in 2014) representing just 0.2% of all borrowers (0.4% in 2014).

Chris White (pictured), the society’s chief executive, said: “To have achieved growth in advances, deposits and margin in a highly competitive market does great credit to the Society and its staff.

“We continue to work with great commitment to provide good value savings and mortgages with excellent personal service delivered in our branches, agencies, through our head office and via our intermediary partners.”

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