Yorkshire Building Society has reported a 17 per cent decline in net lending during the first half of the year at £521m down from £630m over the same period in 2015.
The mutual posted pre-tax profits of £99.9m for the first half, down 10 per cent from £111.2m over the same period last year.
Mortgage balances increased from £33.3bn at the end of December to £34bn at the end of June, while savings balances grew from £27.9bn to £29.4bn over the same period.
The building society says it further improved its liquidity position above regulatory requirements with balances increasing to £4.7bn (31 December 2015: £4.4bn).
It also bolstered its capital position with common equity tier 1 capital of 14.6 per cent (31 December 2015: 14.5%) and maintained its leverage ratio at 5 per cent.
It says it diversified its funding base to support mortgage lending by issuing £400m of 10 year senior unsecured notes in April 2016.
The lender claims to have launched over 700 mortgage best buys, which it says is more than any lender.
It launched an online mortgage appointment booking tool allowing customers to book an appointment directly into an adviser’s diary.
Yorkshire Building Society chief executive Chris Pilling says: “In the first half of the year, against a backdrop of an unpredictable economic environment and competitive trading conditions, we have remained true to our mutual ethos, focusing on our core mortgages and savings business to help people buy the homes they want and to save for their futures.
“With market-leading mortgages we helped more than 3,000 people take the first step on the housing ladder and supported many more to own a home of their choice.
“Our savings rates have been on average 1.4 per cent compared to the market average of 1per cent. Continuing to offer long-term value to our savers is a key priority. However, it is important that we also maintain rates that ensure financial sustainability and therefore are not out of line with the market.
“Despite the challenges the Society and other financial services providers may face as a result of economic and political uncertainty, we remain in a strong position to continue investing in, and growing our business on behalf of our members.”