Leeds Building Society have announced plans to increase their mortgage lending by 25% following a year of bumper profits.
The fifth largest building society in the UK hoped to increase its mortgage lending to £1.25billion in the next 12 months, after lending £984million last year, up 7% on 2009.
The society will continue to adopt ‘a prudent approach’ to lending, insisting that all residential mortgages must be backed up with a saver’s deposit, and last year saw their average loan to value ratio sit at just 53%.
In the past two years the mutual sector has faced stiff competition from nationalised and part nationalised banks, and have complained that the governments intervention has been unfair.
Leeds however have seen the reverse happen, and have grown their savings balances to over £7billion, up £245million in the past year.
Leeds also raised £250 million by creating a covered bond issue, the first in the UK since 2007, and the first ever to use residential mortgages as security.
By also raising £250 million from wholesale markets, the society have now secured nearly all of the long-term funding they will need in 2011.
The society made an operating profit of £84.5 million, up £4.5million on the previous year, and their bottom line profit was still £42.2million, up 33% on their 2009 figures.