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Co-op mortgage applications up by a third

Mortgage applications have increased by 31% at the Co-op in the first half of 2010.

Co-operative Financial Services, which includes the internet bank smile.co.uk, also revealed it increased its operating profit by a third, to £109.3m, in the first half of 2010.

Profits are up from £81.4m from the first half of 2009.

A total of £1.1bn was borrowed by mortgage customers and £0.4bn to businesses. 

Total customer deposits increased substantially by £1.4bn.

Impairment costs have been reduced significantly, down 41.1% to £43m from £73m last year after improvements in arrears collection and credit risk profiling.

The Bank says its residential book is now predominantly prime in nature, geographically spread with low and reducing LTVs.

Pre-tax profits, membership distributions and fair value amortisation to the half year of £75.9m, 50.3% higher than the first half of 2009.

At the end of June 2010 the Bank had a capital ratio of 13.2% and a tier one ratio of 9%.

Large inflows of retail and corporate deposits strengthened the customer funding ratio still further to 110% from 104% at December 2009.

The continuing strength of CFS’s customer proposition and advocacy scores helped total income rise by 21% to £673.5m from £556.4m.

The Bank is integrating Brittania Building Society into the group after its acquisition.

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  • Dean French 27th August 2010 at 1:46 pm

    The Co-op did not acquire Britannia, it was a merger.

  • Dean French 27th August 2010 at 1:45 pm

    The Co-op did not acquire Britannia, it was a merger.

  • chris gardner 27th August 2010 at 11:31 am

    once lenders have an appetite to lend they will be back courting brokers and the dual pricing will be in the brokers favour.As for the co-op. Its disingenuous of them to suggest that are a co-op.Its a business. isnt it?

  • gs 26th August 2010 at 12:42 pm

    This is not a great surprise. As an ex employee of the sales force I saw first hand some of the hard sales tactics that were used to persuade customers to take out new products, many of which have, at best, limited disposable income. It is becomming more of a bancassurer than a co-operative. No wonder they are always looking to recruit’financial advisers’.

  • Mark Stroud 26th August 2010 at 11:58 am

    Well done to all those advisers who advise people to go direct. Hopefully all the other lenders will look at this and stop paying proc fees too.

  • Andrew Hagger 26th August 2010 at 11:45 am

    No surprise – Britannia and Co-op have been offering some excellent rates this year – even a five year fix at 3.99% at one stage. Good deals for FTBs too.

  • michael 26th August 2010 at 10:49 am

    31% up on 12 cases is not bad – up to a whole 16 now!