Kent increases mortgage business by 8%

Kent Reliance has taken more than 10 times its natural share of new savings and mortgage market business in the six months to 30 June 2006.

Comparisons with the results of other building societies and banks for the first half of 2006, show that the societys mortgage balances have grown by over 8%, comfortably outstripping the growth rates achieved by former societies Abbey, Alliance & Leicester, Barclays and HBOS. The comparison with the performance of the remaining building societies is even more pronounced, at almost double the average growth rate of just 4.2%.

Commenting on the figures, deputy chief executive, Rob Procter says: These tremendous results demonstrate the effectiveness of our decisions to outsource work to India and transfer our branches to agencies. The cost savings are passed on to our savers and borrowers by way of superior products. It is no accident that this innovative approach to business has made Kent Reliance the fastest growing building society in the country over the last five years.

Mike Lazenby, the outspoken leader of the tiny Kent Reliance, shocked society leaders at last years annual CML conference when he forecast the demise of the industry if they did not adapt to the changing realities of the 21st century. The societys decisions to outsource work to India and franchise its branch network were met with wide spread scepticism. However, the societys results back up the controversial approach and are a salutary warning to those who refuse to adapt.