Skipton Group, which includes Skipton Building Society, Connells Group and other businesses, has published its trading results for 2023.
The group saw 40% increase in number of first-time buyers throughout the year, helping more than 19,000 achieve their goals of homeownership.
Skipton launched its Income Booster for first-time buyers and received £327.5m in applications.
Additionally, the group recorded over £62m in applications from first-time buyers via its 100%, deposit free mortgage.
It saw a growth in UK market share in both savings (10%) and mortgages (12%) together with maintaining healthy share in estate agency.
Profit before tax was £333.4m, marking an annual increase of over £30m.
Charlotte Harrison (pictured), CEO of home financing at Skipton, said: “The strong results announced today are a true reflection of the hard work, dedication, and the lengths we have gone to at Skipton to help bring real change to the housing market and the mortgage sector as a whole.
“In February 2023, I stepped up to become the CEO of the Home Financing business and just one year later, I’m extremely proud of what we have already delivered as a business to help support homeowners and first-time buyers.
“From bold product innovation, delivering the UK’s only, deposit-free mortgage – Skipton’s Track Record – providing a much-needed lifeline to tenants stuck renting, enabling them to achieve their home ownership aspirations.
“Through, to not passing on the majority of base rate increases to our MVR and SVR customers, ensuring we maintain as a lender one of the lowest MVR/SVR’s on the market.”
She added: “We’ve also taken a look at ourselves to cut through the mortgage jargon and rename our products to help more first-time buyers better understand the options that are available to them on the market.
“However, there is more we can still do as there are too many people in the UK who desperately feel that they will never have a home of their own – we want to change this.
“Which is why, in the Home Financing business we are committed to continuing to keep pushing for change in the housing sector – we’ll continue to hold ourselves accountable and be braver and bolder in our approach to deliver more innovation and take action where it is needed to support more homeowners and help even more people to take their first steps onto property ladder.”
Reaction:
Akhil Mair, director at Our Mortgage Broker:
“Skipton Building Society’s latest business results are nothing short of astounding. With a 40% surge in the number of first-time buyers assisted, totaling over 19,000, they’re truly empowering dreams of homeownership.
“The launch of Income Booster has revolutionised borrowing power, evidenced by a staggering £327.5m in applications.
“Not stopping there, the UK’s only deposit-free mortgage garnered over £62m in applications, marking a pivotal shift in accessibility.
“Remarkably, Skipton also solidified its position in the market, boasting a 10% growth in savings and a 12% increase in mortgages.
“Congratulations to Skipton on these remarkable achievements, we love working with you.”
Graham Cox, founder at Self Employed Mortgage Hub:
“A 10% increase in pre-tax profit shows the benefits of Skipton’s innovative and disciplined approach to mortgage lending.
“Renamed mortgage products to make them more first-time buyer friendly have clearly helped, and they are still the UK’s only deposit-free mortgage provider, though admittedly uptake has been fairly limited.
“Interestingly, rental property supply is up 10% at Skipton-owned Connell’s estate agents, suggesting pressures on rents may be starting to subside.”
Gary Bush, financial adviser at MortgageShop.com:
“Skipton Group, the building society owning company, has released its trading results and at first glance they look impressive.
“When it comes to this company’s mortgage lending activities, we take our hats off to them.
“They are often seen pushing the envelope and launching new and innovative products to help applicants, especially first-time buyers.
“On the property front we do wish they reigned in their estate agent sales teams and some of the things they tell house buyers, like you must use our mortgage brokers.
“I thought with increased regulation we’d seen the back of such activities but from consumer feedback it seems not sadly.”
Mike Staton, director at Staton Mortgages:
“There’s no surprise that Skipton experienced growth last year, considering the marketing gimmick they introduced in the form of the 0% mortgage.
“I doubt the mortgages completed had little impact on these figures but the publicity they gained off the back of this was a marketer’s dream.
“Well played to the marketing team, now let’s hope they draw a line between treating Connells brokers differently from all other brokers. That would surely increase growth further.”
Rhys Schofield, brand director at Peak Mortgages and Protection:
“A strong set of results in a challenging year from Skipton who are a great and innovative lender.
“Although once Martin Lewis gets his teeth into the conditional selling hot topic, the broking and estate agent arm may not find the going as easy.”
