Virgin ups gross mortgage lending by 19% in H1 2016

Ryan Bembridge

July 26, 2016

Virgin Money increased its gross mortgage lending by 19% to £4.3bn in the first half of 2016 year-on-year.

In the process the bank made an underlying profit of £101.8m before tax, a 53% increase from the first half of 2015.

The bank increased its net lending by 29% to £2.2bn, with mortgage balances increasing by 9% to stand at £27.7bn.

Gap between residential and buy-to-let activity widens

Virgin’s mortgage book was made up of 82% residential and 18% buy-to-let.

Jayne-Anne Gadhia, chief executive said: “Our mortgage book remains high quality, with no exposure to commercial property.

“The average loan-to-value of our retail mortgage portfolio was 55.4% at H1 2016.

“We will continue to focus on maintaining the high quality of our mortgage business.”

She was also bullish about the vote to leave the European Union.

Gadhia added: “Since the vote to leave the EU we have experienced continued strong customer demand and no evidence of changes in customer behaviour.

“Virgin Money is in a strong position to deal with a period of post-referendum uncertainty as a low-risk retail bank with a high-quality asset base and unburdened by legacy conduct issues.”

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