Leeds Building Society to increase lending by 25%

Leeds Building Society to increase lending

Leeds Building Society to increase lending

After unveiling profits for 2010, Leeds Building Society has announced plans to increase its mortgage lending by 25% this year.

As the UK’s fifth largest building society, Leeds said it aimed to lend £1.25bn in 2011.

This comes as a result of the companies savings balances increased by £245m during the year, reaching a record of £7bn.

Setting the trend for the mutual sector, the amount is twice that is expected for a building society of its size.

Leeds Building Society announced operating profits last year rose to £84.5m from a record £80.1m in 2009.

UK mortgage lending fell as a whole 13% in January from the previous month to the lowest level for a year. This has encouraged the company to lend more money for mortgages.

Chief executive Ian Ward said: “Leeds Building Society has again delivered a very good set of financial results despite the continuing challenges for the financial services sector.”

The group said it had continued to adopt a “prudent approach” to lending, reinsuring residential mortgages’ with saver’s deposits.

Leeds Building Society awarded part of its success to the savings created by the popularity of its fixed rate bonds, allowing customers unlimited access to a part of their money without risk of penalty during the products term.

However, difficult economic conditions led to the group suffering losses of £44.2m through defaults on residential and commercial lending, although this was down from £52.5m in 2009.

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