OneSavings reports mortgage lending rise of 26%

OneSavings Bank increased its mortgage lending by 26 per cent year-on-year in the first half of the year.

Publishing its half-year results last week, the lender revealed it had advanced £130m in new residential mortgages in the first half of the year, up from £103m in the same period a year before. It says lending has been particularly strong in London and the South-east.

Pre-tax profits for the first half of the year hit £29.7m, more than four times higher than in the same period a year earlier at £7.3m.

The results say the bank is well placed to “take advantage of the disruption in the direct lending portion of the residential mortgage market following the Mortgage Market Review”, as it only lends through brokers.

The lender set aside £2.7m in regulatory provisions for the first half of the year, up from £2.1m at the same point last year.  The bank says this mainly relates to levies for the Financial Services Compensation Scheme. 

OneSavings Bank chief executive Andy Golding says: “These results show the strength and opportunity in the business we have created. We are particularly proud of our return on equity, which has been delivered at a time when we have also delivered a significant growth in lending.”