Property Reporter



Mortgage lending up 8% at Coventry BS

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Mortgage lending up 8% at Coventry BS

Coventry Building Society has revealed a 7% rise in its profits before tax, taking the total to £216m, and an 8% rise in new mortgage lending to £8bn in 2015.

Its full year results show that the Society's mortgage assets increased by £2.5 billion (9%) to £29.4 billion, five times the rate of market growth.

At 31 December 2015, only 0.24% of mortgage balances were 2.5% or more in arrears.

Net interest income stood at £363.9m - £22.6m higher than the previous year, primarily as a result of growth in mortgage assets, according to Coventry.

Savings balances grew by £2.0bn (8%) to £25.4bn.


Mark Parsons, Coventry Building Society Chief Executive, said: “It continues to be a tough time for savers and in a low interest rate environment it is important that we provide competitive savings products not just today, but reliably and sustainably into the future.

We are achieving this. At the end of 2015 our average savings rate was 1.97% compared to a market average of 1.11%. Furthermore, at the end of 2015 our average variable rate on cash ISAs was nearly two and a half times the market average.

Our ability to do this, whilst maintaining a very competitive mortgage portfolio, is underpinned by the high quality of our mortgage lending, which results in extremely low impairment charges, as well as low cost operations. We continue to lead the sector in cost-efficiency, with our management expense ratio of 0.42% remaining significantly lower than that of our peers.

We also strive to keep things simple, transparent and easy to use. To help achieve this we have commenced a four year technology programme that will deliver improved processes and systems, and provide our members with enhanced service options."

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Latest Comments

Paul
Paul 25 May 2016

Estate agents are pathetic when it comes to fees. They have this 'I had to do it at 1% because that's what the others were quoting' mentality. We are the most expensive agents in our area, charging double...

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HMO Midlands Landlady
HMO Midlands Landlady 24 May 2016

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CommercialTrust
CommercialTrust 20 May 2016

With the bulk of the market controlled by large developers, profit rather than necessity determine the pace at which homes are built. There are hundreds of thousands of plots that have planning permission...

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Johna
Johna 20 May 2016

"Easier said than done" is what I would say. Of course, it would be more than great to have more in quality and affordability, but I do not trust talk anymore.. What is said is not what is happening.

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Johna
Johna 20 May 2016

in my humble opinion being fair like THE most important! I myself have had bad experience with unfair landlords... not to mention that I know how to do a proper end of tenancy cleaning since I am a fantastic...

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richardrawlings
richardrawlings 18 May 2016

NB - even if we doubled our commission levels in the UK, we'd still be by far the cheapest agents in the entire world.

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Agent_PeeBee
Agent_PeeBee 18 May 2016

Clueless. Someone needs to take these people's computers away from them so they can do no more harm than they already have.

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richardrawlings
richardrawlings 18 May 2016

Nonsense! The cost of selling a house nowadays has little bearing on the fees charged. Don't believe your own spin on this. Fees have spiralled down to pathetic levels in areas where weak agents have allowed...

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Simon Oliver
Simon Oliver 16 May 2016

The best solution is to buy a property that has built-in income generating potential: a nice house with a couple of gites in the grounds is a good start. In France, the rune of thumb is that one 2-bedroomed...

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WPD
WPD 12 May 2016

I suggest the answer is to have the notary system being one legal person who represents both parties. Having experienced it a couple of times in France it was a dream compared to our dysfunctional system....

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warren
warren 03 May 2016

It's enough to make me weep into my Pimm's :(

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james anderson
james anderson 03 May 2016

The sad demise of the croquet lawn...

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