In a challenging environment, Newcastle Building Society delivered a strong performance in 2021, reflecting the ongoing success of its purpose led strategy and the commitment of colleagues to deliver for customers.
With the UK housing market showing a continued upward trajectory, the Society saw gross mortgage lending increase to £861m compared with £645m in 2020.
The North East’s largest building society increased operating profit before impairments and provisions to £28.5m, resulting in a record pre-tax profit of £29.1m compared to £1.4m in 2020.
However, recognising that achieving the dream of home ownership without family or other financial assistance can often seem out of reach when a large deposit is required, the Society participated in the launch of two innovative mortgage support schemes to help people onto the housing ladder.
Newcastle Building Society was the first lender to offer mortgages under ‘Deposit Unlock’, a unique insurance-backed collaboration with the Home Builders Federation which helps those with a small deposit to realise their dream of owning a new-build home.
The Society was also one of the initial lenders to sign up to the Government’s First Homes scheme which helps local first-time buyers – particularly key workers such as NHS staff and armed forces veterans – onto the property ladder by offering homes at a discount of at least 30% compared to the market price.
These innovations, along with a comprehensive range of mortgage products designed to improve access and affordability, helped the Society welcome 5,300 new mortgage customers during 2021.
Andrew Haigh (pictured), chief executive officer at Newcastle Building Society. said: “I’m proud that despite the many challenges, 2021 was a year of achievement for Newcastle Building Society.
“We have delivered a strong set of results characterised by a spirit of creativity, agility and commitment.
“But the driving force behind these results is our purpose-led approach, which we bring to life through our support for communities, the innovative products we offer, our investment in maintaining our presence on our high streets and our passion for delivering high standards service for our customers.”
