Specialist lender Together has reported average monthly loan originations of £125.4m for the third quarter of 2017, up 15.8% compared with £108.3m in Q2 and up 65.4% compared with £75.8m in Q1.
Its loan book totalled £2.37bn at September 30, 2017, up 5.7% compared with £2.24bn at June 30, 2017 and up 27.7% compared with £1.86bn at September 30, 2016.
Together’s group weighted average LTV of new originations in the quarter was 57.8% compared with 58.7% in Q2 and 55.1% in Q1.
Mike McTighe (pictured), group chairman of Together, said: “Together continued to grow strongly in the quarter to 30 September 2017, significantly increasing lending volumes at conservative LTVs and delivering higher profitability and cash flows.
“Originations were 15.8% higher than in Q4 ’17, averaging £125.4m per month with a conservative weighted average loan-to-value of 57.8% as we grew the loan book to £2.37bn. Underlying profit before tax was £31.0m, up 2.9% on Q4’17 and 12.3% on Q1 ’17 as the Group generated cash receipts of £319.3m.
“During the quarter, we accelerated our strategic investment programme as we invest in the people, systems, distribution and marketing to build the platform to support our future growth ambitions. We also further diversified our funding structure with the issue of our £275m debut public residential mortgage backed security transaction.
“While detailed Brexit negotiations may increase market volatility and the UK economic outlook remains mixed, this may create further opportunities for specialist lenders. With our successful 43 year track record, established business model and the investment we are making in our platform we believe Together is well placed to benefit from these conditions and to deliver on our ambitious growth plans.”