Mortgage lending up, with nearly half of new loans going to first-time buyers
Leeds Building Society has reported record-breaking financial results for the fourth consecutive year, with significant growth in mortgage lending in 2024.
The mutual’s underlying pre-tax profit rose to £187.5 million from £181.5 million in 2023. Total assets increased to £31.6 billion, and capital and reserves surpassed £2 billion.
The lender’s gross mortgage lending also rose to £5.7 billion, up from £4.4 billion in 2023, while net lending increased to £2.6 billion from £1.5 billion the previous year. Its market share of new lending expanded to 2.3% from 1.9%, and its total mortgage asset balance reached a record £24.4 billion. Mortgage arrears fell slightly to 0.58%.
Nearly half, or 47%, of its new mortgages in 2024 were issued to first-time buyers. The mutual launched several initiatives aimed at helping first-time buyers enter the property market. Its Income Plus mortgage range, which allows borrowers to access an average of £66,000 more on 95% loan-to-value (LTV) loans than standard mortgages, was the lender’s most successful product launch to date.
The lender also expanded its Reach Mortgages, offering options for borrowers with lower credit scores, and continued a partnership with Experian to help applicants improve their credit scores. According to the building society’s data, more than 4,100 mortgage applications benefited from boosted Experian credit scores in 2024, with 64% of those applicants being first-time buyers.
The mutual also increased LTV limits on certain residential mortgages and continued to provide shared ownership loans.
“We’ve been helping people get on, and stay on, the housing ladder for nearly 150 years, and continue to push for real change in the housing market,” said Richard Fearon (pictured), chief executive at Leeds Building Society. “We know that first-time buyers today face many barriers to entering home ownership, and we continue to find new ways to support them, including our Income Plus and Reach mortgage ranges.”
Looking ahead, Fearon emphasised the building society’s commitment to long-term investment in its business, highlighting branch expansions, digital improvements, and continued product innovation.
“Our achievements in 2024 show the society at its best, reflecting the talents of our colleagues and the collaborative culture they foster,” he said.
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