Leeds Building Society has reported strong performance in the first half of 2023, continuing to support new and existing borrowers amidst volatile market conditions.
A record-breaking 49% of all new borrowers were first-time buyers, reflecting the Society’s commitment to making home ownership more accessible despite economic challenges.
The UK’s fifth-largest mutual increased its share of gross lending to 1.62%, with a total of £1.9bn, a decrease from £2.5bn in H1 2022. The Society also reported that six of their 10 biggest days for mortgage lending occurred in the first six months of this year, with June marking a record month for Shared Ownership.
CEO Richard Fearon emphasised the Society’s commitment to supporting first-time buyers and the affordable housing sector. He said: “Almost half our new borrowers in H1 were first-time buyers…we’ve stayed actively and responsibly lending in a fast-changing market throughout H1 and at all LTV bands up to 95%.”
In response to the repeated Bank of England Base Rate rises, the Society limited increases in its standard variable rate and provided tailored support for borrowers facing financial difficulties. It was among the first to sign the Government’s new Mortgage Charter and the first to launch a simple, digital application process for borrowers seeking assistance.
Innovations included the launch of Experian Boost, a unique partnership with Experian aimed at improving potential borrowers’ credit scores. Leeds Building Society also introduced the Home Deposit Saver, a regular savings account that offers first-time buyers a £500 top-up to their deposit savings upon receiving their mortgage offer.
Despite rising interest rates, the Society has continued to stand by borrowers and savers, with Fearon confirming that they consistently pay above the average market rate for their savings members. The Society’s total assets reached a historic high of £26.9bn, up from £24.1bn in H1 2022, while pre-tax profit was £116.2m, down from £146.5m in the same period last year.
