Coventry’s net mortgage lending rockets 97%

Coventry’s net mortgage lending surged 97% in 2007 – a record achievement for the mutual.

In its full year results for 2007 out this week, Coventry reveals that net lending increased to £1.7bn for the 12 months to December 31 2007, while gross mortgage advances increased by 44% to over £4.2bn.

David Stewart, Coventry’s chief executive, says: “Both these figures represent records for the society.

“The overwhelming majority of our mortgage lending continues to be in low risk sectors and we maintain strict limits to control the amount of potentially higher risk lending undertaken.”

Stewart says that the maximum LTV for its buy-to-let lending has been 85% while the average LTV for its total mortgage book at the year end was 45% after being adjusted for inflation.

He adds that unsecured lending totalled £55m last year, with the loans representing less than 1% of Coventry’s total outstanding loan book.

Stewart says: “As in previous years, all our mortgage growth was organic. We have never purchased a mortgage book, preferring to retain control of the origination and undwriting process. I am sure this policy has helped us to maintain our high asset quality.”