Principality increases mortgage lending

Principality Building Society increased mortgage lending by 1.6 per cent in the first half of 2015.

Its interim results, which account for the first six months of the year, show lending increased from £545.5m in H1 2014 to £554.7m in H1 2015.

The Wales-based society’s book surpassed £5bn for the first time at the end of June, up from £4.8bn at the end of December.

Around 87 per cent of its mortgages were funded by savers at the end of June, down from 91.4 per cent at the end of December.

Pre-tax profits hit £23.2m, down from £30.6m in the first six months of 2014, although this included a £10.1m one-off benefit from a change in the pension inflation assumption.

Chief executive Graeme Yorston says: “I am delighted to report another very strong set of results for the Principality Group for the first six months of 2015, where we have seen our strategy of growing the core business continuing to deliver.

“In the first half of the year we have once again grown our lending to customers buying their own home, contributing to the overall increase in lending to home owners which now exceeds £5bn for the first time in the Society’s 155 year history. Crucial to this and to the market as a whole, has been lending to first-time buyers where we have consistently

”Supported people onto the housing ladder. As house prices have stabilised and low interest rates have been seen across the market a greater level of affordability has returned, enabling us to help over 1,100 first-time buyers move into their first home in the first six months of the year.”