Hinckley & Rugby hits £92m lending in H1

Michael Lloyd

July 25, 2018

Hinckley & Rugby Building Society completed £92m of new mortgage lending in the first half of its current financial year.

The £92m advanced in six months to the end of May 2018 contributed to a £35m growth in mortgage balances to £655m.

The full year target for advances is £177m. Net mortgages applications also totalled £92m, more than half way towards the full year target of £175m.

Chris White, Hinckley & Rugby chief executive, said: “Achieving a retention rate where almost three out of every four mortgage customers are choosing to stay with us shows how competitive we remain and how hard our staff work to provide an outstanding service.

“We’re on track to achieve the challenging targets we set for ourselves, against a backdrop of a very competitive mortgage market where rates have not risen despite the increase in the Bank of England base rate late last year.

“Whatever happens next to the Base Rate, and when that is, the mortgage market will continue to be one where we need to offer competitive products, manual underwriting that looks at applications in the round and excellent service to intermediaries and customers.”

The society said it is excelling at retentions – 74% of customers reaching the end of a special mortgage scheme stayed with Hinckley & Rugby, without the society offering specific retention products.

Fixed rates were the most popular mortgage type in the six months from December to May, with almost 60% of advances at or below 75% loan-to-value.

The growth in lending was funded by net retail savings receipts of £19m, with the balance coming from existing liquidity, Bank of England funding facilities and the wholesale market.

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